Company: COFS
Filing Date: 2025-04-08
Form Type: DEF 14A
Source: 0001140361-25-012677
Chunk: 24

Company: CHOICEONE FINANCIAL SERVICES INC
Filing Date: 2025-04-08
Form: DEF 14A
Chunk 24
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 |     |     495,375 |     |       — |     |           — |     |          495,375 |     | 5.50%    |
| Fourthstone LLC             
 575 Maryville Centre Drive, 
 Suite 110                   
 St. Louis, MO 63141         |     |           — |     |           — |     | 476,103 |     |     476,103 |     |          476,103 |     | 5.32%    |

| (1) | The percentage set forth in this column was calculated on the basis of 8,965,483 shares of common stock outstanding as of December 31, 2024. |

15

Executive Compensation Compensation Discussion and Analysis ChoiceOne has designed its executive compensation programs to attract, motivate, reward, and retain executive management talent, and to encourage executive management to manage the Company to achieve our corporate objectives and increase shareholder value through long-term profitable growth. The Personnel and Benefits Committee believes that ChoiceOne’s compensation programs are appropriate considering such factors as the size of the Company and ChoiceOne Bank, the market for executive talent in which we compete, and the Company's short-term and long-term strategic objectives. The Personnel and Benefits Committee believes that the Company's compensation programs strike an appropriate balance between incentivizing growth while not encouraging excessive risk-taking. Executive compensation consists of a base salary and incentive-based compensation. The Personnel and Benefits Committee determines base salary annually using market comparisons and performance metrics. The incentive-based compensation is determined using the incentive compensation plan (“the Plan”) discussed below. Incentive Compensation Plan The Plan’s objective is to align executive pay with ChoiceOne Bank’s performance and comply with industry best practices. The Plan and performance period operate on a calendar year basis with incentive awards earned during each Plan year and payouts made in the first half of the following Plan year. Payouts are contingent upon continued employment with ChoiceOne Bank through the date of payment. The Plan outlines specific eligibility requirements to participate. Incentive awards are based on eligible salary, which is defined as the actual amount of salary earned in the calendar year in which the award is based. Incentive awards are determined based on a combination of ChoiceOne Bank’s performance, calculated using a defined model that is based on expected levels of asset growth and return on average assets, adjusted by an asset quality modifier if asset quality deteriorates. Incentive awards are limited to 200% of the target award. The incentive award payouts are made in cash payments,