Company: CMTV
Filing Date: 2025-04-09
Form Type: DEF 14A
Source: 0001174947-25-000534
Chunk: 23

Company: COMMUNITY BANCORP /VT
Filing Date: 2025-04-09
Form: DEF 14A
Chunk 23
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 served over the years by a leadership structure guided by the Corporate Governance/Nominating Committee that includes a Board Chair with in-depth managerial and operational knowledge of the banking industry and the Company’s business operations and markets. This structure fosters clear accountability, efficient and effective decision-making and focus on strategic priorities. The Board also believes this structure helps to facilitate the efficient and timely flow of information between management and the Board. While the Board of Directors believes that having the position of Board Chair held by a former or current CEO is conducive to the Company’s efficient operation and strategic development, the Board is also mindful of its obligation to provide independent oversight of management. To enhance its oversight function, the Board has created the position of lead independent director, which is currently held by long-serving director Tom Adams. The lead director presides over the executive sessions of the independent directors. The Board believes that this structure strikes an appropriate balance by providing for both a Board Chair with extensive executive experience with the Company and knowledge of its operations, and a lead director to help ensure that the Board provides independent oversight and perspective. As part of its role in oversight of the Company, the Board has adopted a management succession plan that includes appropriate processes to ensure a smooth transition in key management positions at the Company and Bank, both in the context of planned retirements as well as unplanned emergencies. The Board reviews and discusses the management succession plan at least annually and has implemented it most recently in connection with the planned retirement of Ms. Austin as Company and Bank CEO at the end of 2024 and transition into those positions by Mr. Caldwell. The Board views management succession planning as essential to ensuring the continued success of the Company and achieving its strategic goals. The Board of Directors plays an active role, as a whole and also at the committee level, in oversight of the risks facing the Company and ensuring that management has the skills and resources to identify and manage the risks within the organization. While risks are inherent in any business, effective management of those risks can contribute significantly to the ultimate success of an enterprise. As a community banking organization, we face a number of risks, including general and local economic risk, credit risk, interest rate risk, liquidity risk, operational risk, strategic risk and reputational risk. Management is responsible for the day-to-day management of risks the Company faces, while the Board, as a whole and through its committees, is responsible for the general oversight of risk management. To identify and manage the Company’s risks more effectively, the Risk Management Committee of the Bank’s Board of Directors is