Company: CCNE
Filing Date: 2025-02-20
Form Type: S-4
Source: 0001193125-25-030821
Chunk: 83

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-02-20
Form: S-4
Chunk 83
---
 believes appropriate compensation is critical to attracting, retaining, and motivating the CNB Board of Directors. The ECC is responsible for reviewing and recommending the director’s compensation to the CNB Board of Directors. The ECC regularly reviews director fees for non-employee directors and considers market analyses provided by the compensation consultant.

Stock Ownership Policy

The CNB Board of Directors believes that directors must have a meaningful ownership of CNB to further align their interests and actions with the interests of CNB’s shareholders. CNB’s bylaws provide that any director, upon first being appointed or elected to serve as a director, must own the lesser of 1,000 unencumbered shares of CNB common stock or the number of shares equivalent to $15,000 of market value as of the date of the appointment or election. The CNB Board of Directors has adopted stock ownership guidelines (the “Director Stock Ownership Guidelines”) for CNB and CNB Bank directors to enhance director stock ownership. Before the third anniversary of the director’s first election to the CNB Board of Directors, the director must at least own the lesser of 2,500 unencumbered shares of common stock of CNB or the number of shares equal to $25,000 of market value. By the fifth anniversary of a director joining the CNB Board of Directors, the director must own and sustain the number of shares of CNB common stock with a market value equal to 500% or more of the director’s annual retainer for serving on both the CNB Bank and CNB boards of directors. Compliance with the Director Stock Ownership Guidelines is monitored and periodically reported to the ECC and the CNB Board of Directors by CNB’s President and CEO.

Deferred Compensation Plan and Survivor Benefit Plan for Non-Employee Directors

CNB has established a deferred compensation plan for its non-employee directors that allows each director to defer receipt of up to 100% of their director compensation. Amounts deferred are credited to a bookkeeping account established in the name of the director and may be notionally invested by the director among a portfolio of investment funds. Any appreciation or depreciation in a director’s bookkeeping account value will reflect the performance of the underlying investments. No above-market earnings accrue under this plan. All amounts deferred under the deferred compensation plan are unfunded and represent a general liability of CNB and CNB Bank. Deferred compensation is structured so that it could serve as a funding source for a Rabbi trust. Amounts credited to a non-employee director’s deferred compensation account will be distributed