Company: PFIS
Filing Date: 2025-03-07
Form Type: PRE 14A
Source: 0001104659-25-021551
Chunk: 46

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-03-07
Form: PRE 14A
Chunk 46
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, including our named executive
officers, have the opportunity to earn performance-based incentive payments based upon the attainment of performance goals approved by
the compensation committee. Incentive compensation under the Cash Incentive Plan represents the “at risk” portion of an executive’s
cash compensation subject to the achievement of performance goals. Historically, the compensation committee has set goals for our executive
officers to achieve in order to qualify for a cash incentive payment under the Cash Incentive Plan. Due to the pendency of the FNCB merger
during the first half of 2024, the committee did not set specific performance goals, but relied on the provisions of the Cash Incentive
Plan which allow the committee to award cash bonuses at such times and in such amounts as determined by the committee in its discretion
from time to time.

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Equity Awards

In February 2024, the
compensation committee granted equity awards as part of its incentive compensation program. For several years prior to 2024, the compensation
committee approved a mix of long-term equity incentives with the majority consisting of performance-vested restricted stock units (“RSUs”)
(70% of the targeted equity award) and the remainder consisting of time-vested restricted stock (30% of the targeted equity award). During
2024, however, the long-term equity incentives consisting solely of time-vested restricted stock and no performance-vested were issued.
The compensation committee is expected to take this into consideration in connection with the 2025 equity award program.

Time-vested restricted stock
vests over three years subject to the executive officer’s continued employment by us. This component reinforces our goal of equity
ownership, shareholder alignment and provides additional retention value for our executive officers.

Below is a summary of the
2024 grants issued to the named executive officers.

| Executive            |     | Restricted Stock 
 Shares (#)       |       |     | Grant Value(1) |        |
|:---------------------|:----|:-----------------|------:|:----|:---------------|-------:|
| Craig W. Best        |     |                  | 1,231 |     | $              | 49,609 |
| Thomas P. Tulaney    |     |                  |   623 |     | $              | 25,107 |
| Neal D. Koplin       |     |                  |   550 |     | $              | 22,