Company: CCNE
Filing Date: 2025-03-05
Form Type: 424B3
Source: 0001193125-25-047258
Chunk: 117

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-05
Form: 424B3
Chunk 117
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 prohibits publicly held companies from deducting annual compensation in excess of
$1,000,000, for U.S. federal income tax purposes, paid to the CEO and all other NEOs (and certain former NEOs) in any one fiscal year. While the ECC recognizes the importance of tax deductibility and endeavors to formulate its compensation program
in a tax-effective manner, it also believes it is critical to balance tax deductibility with ensuring that CNB’s programs are designed appropriately to recognize and reward executive performance, such
that at times current tax deductibility limits may be exceeded.

The ECC has considered the impact of the Financial Accounting Standards Board ASC Topic
718 on CNB’s equity incentives as a key retention tool.

Stock Ownership Guidelines

In 2014, the CNB Board of Directors adopted stock ownership guidelines (the “Executive Stock Ownership Guidelines”) for executive officers of CNB and
CNB Bank and its regional bank presidents. The CNB Board of

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Directors believes that a certain level of stock ownership of senior management further aligns their interests and actions with the interests of CNB’s shareholders. The Executive Stock
Ownership Guidelines require Mr. Peduzzi, in his capacity as President and CEO, to continuously build his common stock ownership during the period of his employment until the number of shares of CNB’s common stock he owns, when multiplied by
the market value of CNB’s common stock, results in a total common stock ownership value equal to 300% or more of his then-base salary.

All other
executive officers of CNB and CNB Bank and its regional bank presidents are required to build ownership during the period of their employment to a number of shares of CNB’s common stock which, when multiplied by the market value of CNB’s
common stock, equals 150% or more of the executive’s then-base salary. The Executive Stock Ownership Guidelines provide that until a person subject to the Executive Stock Ownership Guidelines achieves the percentage ownership target under such
guidelines, the person may not dispose of any shares of common stock, including those received from the long-term incentive equity compensation, other than for purposes of paying the applicable taxes associated with such awards. The Executive Stock
Ownership Guidelines are administered and enforced by the ECC, and compliance is monitored and reported to the ECC by CNB’s President and CEO.

All
NEOs continue to be on track towards achieving and/or maintaining their minimum stock ownership levels as required under the Executive Stock Ownership Guidelines. While Messrs. Lima and Dixon are compliant with