Company: PFIS
Filing Date: 2025-03-07
Form Type: PRE 14A
Source: 0001104659-25-021551
Chunk: 29

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-03-07
Form: PRE 14A
Chunk 29
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Our compensation committee
has reviewed the compensation policies and practices of the Company and has determined that the policies and practices do not motivate
imprudent risk taking and are not reasonably likely to have a material adverse effect on the Company. The compensation committee is aware
that compensation arrangements, if not properly structured, may encourage inappropriate risk-taking. Further, banking regulators expect
us to maintain incentive compensation practices that are consistent with our safety and soundness as a banking organization. Compensation
arrangements are expected to provide employees incentives that appropriately balance risk and reward, are compatible with effective controls
and risk-management, and are supported by strong corporate governance, including active and effective oversight by our board of directors.
A long-standing example of how our compensation programs protect against imprudent risk taking is the clawback provision included in the
Peoples Cash Incentive Plan. In addition, since January 2017, we have maintained a compensation recoupment policy, which applies
to all executive officers who receive cash or equity incentive awards, and in 2023, we adopted the Dodd-Frank Clawback Policy (the “Clawback
Policy”) to adhere to the listing standards of Nasdaq and the rules of the SEC implementing Section 954 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010.

Board Committees

As noted above, the board
of directors of the Company conducts much of its business through committees of the board. During 2024, the board maintained standing
audit, compensation, nominating and governance, information technology, and environmental, social, and governance (ESG) committees.

Audit Committee

Directors Bodnyk, Bracey,
Conaboy, Eckel, Kukuchka, Lambert, Lochen, Melone, Nicholas and Ramirez currently comprise the audit committee of the board of directors.

Each member of the audit committee
was independent under the requirements of Rule 10A-3 under the Exchange Act and the relevant listing standards of the Nasdaq Stock
Market LLC relating to audit committee members. The board of directors has determined that each of Kathleen McCarthy Lambert, Richard
S. Lochen, Jr. and Thomas J. Melone qualifies as an “audit committee financial expert,” as defined under the rules of
the U.S. Securities and Exchange Commission, or “SEC.” The audit committee met five times in 2024.

The audit committee is governed
by a formal charter approved by the board of directors, a current copy of which is available via the Company