Company: RNST
Filing Date: 2025-02-26
Form Type: PRE 14A
Source: 0000715072-25-000057
Chunk: 99

Company: RENASANT CORP
Filing Date: 2025-02-26
Form: PRE 14A
Chunk 99
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 79-4-2.02(b)(4) of the MBCA permits a Mississippi corporation to include a provision in its articles of incorporation eliminating the liability of a director to the corporation or its shareholders for monetary damages for any action taken, or any failure to take any action, as a director. The statute provides for situations where liability may not be eliminated: (1) the amount of a financial benefit received by a director to which he or she is not entitled; (2) an intentional infliction of harm on the corporation or the shareholders; (3) a violation of Section 79-4-8.33 of the MBCA, which governs liability for unlawful distributions; or (4) an intentional violation of criminal law. This is commonly referred to as a “director exculpation clause.”

The board of directors and the committee annually review Renasant’s corporate governance policies and practices. In late 2024 and early 2025, the committee considered the addition of a director exculpation clause to the Articles of Incorporation. The committee reviewed what it perceived to be the advantages and disadvantages of a director exculpation clause, the views of corporate governance commentators and others with respect to director exculpation clauses and the practices among financial institutions that we view as our peers.

The committee recognized that the governing instruments of a large majority of public companies provide for exculpation of directors like the one we have proposed, and that such exculpation clauses have become a routine element of public companies’ corporate governance structures. The prevalence of director exculpation clauses extends to financial institutions: a substantial majority of the companies included in our 2024 compensation peer group have adopted director exculpation clauses.

The nominating committee believes director exculpation clauses help ensure that concerns about potential exposure to personal liability will not adversely impact an individual’s decision to serve as a Renasant director or the willingness of our directors to make difficult, potentially value-maximizing business decisions that are necessary in a highly competitive environment. The nominating committee determined that a director exculpation clause will allow our directors to more effectively fulfill their role on behalf of shareholders. The frequency of litigation and the substantial costs associated with defending claims against directors, regardless of the merit of the claims, was also noted.

Based on this review and its conclusions, the nominating committee determined that the addition of a director exculpation clause in the Articles of Incorporation is in the best interests of Renasant and its