Photo dated 2019
At Cambridge Trust, we adhere to the highest standards of corporate governance to ensure outstanding and ethical organizational behavior.
Board and Executive Management
The Company’s Board of Directors is comprised of 16 directors. A majority, 77%, are independent. The Board provides oversight of the President & Chief Executive Officer and other management of the Company and Cambridge Trust to ensure that the long-term interests of shareholders are being served. The Board believes that having a combined Chairman and principal executive officer, coupled with a lead independent director, is the most appropriate leadership structure for the Company, especially given Mr. Sheahan’s extensive experience in banking and financial services and his extensive knowledge of the Company and its governance. This structure allows Board discussions regarding performance and strategic matters to be led by the person who oversees the Company’s strategy and operations and establishes a single voice to speak on behalf of the Company, while the lead independent director component of the structure provides independent leadership that mitigates any real or perceived conflicts of interest.
Board’s Role in Risk Oversight
The Board has the ultimate authority and responsibility for overseeing risk management at the Company. Some aspects of risk oversight are fulfilled at the full Board level. For example, the Board regularly receives reports from management on numerous risk components that impact the operations and reputation of the Company. The Board delegates other aspects of its risk oversight function to its committees.
The Audit Committee oversees, reviews and monitors, including discussing with management, the internal auditors and the independent auditor, the Company’s and Cambridge Trust’s major risk exposures and the steps management is taking to monitor and control such exposures, including the Company’s enterprise risk management approach, risk assessment and risk management policies.
The Compensation Committee oversees the management of risks that may be posed by the Company’s compensation practices and programs. As part of this process, the Compensation Committee reviews the Company’s incentive plans to ensure that such plans adequately manage risk and do not cause excessive risk taking.
Selected Corporate Policies
- Advertising Policy
- Workplace Anti-Harassment Policy
- Anti-Nepotism Policy
- Bank Secrecy Act / Anti-Money Laundering (BSA/OFAC) Policy
- Business Continuity Policy
- Code of Ethics Policy
- Community Reinvestment Act: Regulation BB Policy
- Compliance Policy
- Fraud/Red Flag Identity Theft Prevention Policy
- Information Security and Cybersecurity Program Policy
- Insider Trading and Confidentiality Policy
- Regulation O: Insider Loans
Supplier Standards
In accordance with international conventions, Cambridge Trust refrains from engaging with any supplier cited for involvement in:
- Child or forced labor
- Discrimination
- Wage reductions as a form of punishment
- Harassment or other abusive behavior
Information Security
Given the nature of our client relationships and the need for us to know our clients, the security of the information that we hold is paramount to the continuation of the organization. Our Data Security team has a process in places to vet and monitor our internal processes as well as those of our third party vendors.
Parameters of our data security process include:
- Annual risk assessments
- Documented and defined structure and responsibilities
- Objectives to protect customer and bank information
- Ongoing training and awareness for employees and clients
- Frequent audits of physical and technical safeguards
- An Incident Response Plan and Team that is updated and tested annually
- Ongoing vendor management and regulatory reviews of our third-party data processing providers, including risk assessments, integrity checks, examination of track record, identification of red flags or definition of requirements
- Information security measures of third-party data processors implemented, as required by the FDIC and the Massachusetts Division of Banks.