Company: PFIS
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0001104659-25-030614
Chunk: 28

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 28
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 has determined that the separation of the offices of chairman of the board, chief executive officer and the president allows
the chairman to lead the board in its fundamental role of providing advice to and independent oversight of management. The chief executive
officer oversees the strategic direction of the Company, focusing on continued innovation and financial performance. The president leads
day-to-day operations and drives business development efforts. This structure also aids in the development of management and succession
planning. Currently, William E. Aubrey II serves as Chairman of the Board, Louis A. DeNaples, Sr. serves as Vice Chairman of the
Board, Gerard A. Champi serves as Chief Executive Officer, and Thomas P. Tulaney serves as President.

Risk is inherent with every
business, and how well a business manages risk can ultimately determine its success. We face a number of risks, including credit risk,
interest rate risk, liquidity risk, operational risk, cybersecurity risk, strategic risk, legal risk and reputational risk. Management,
including our Chief Risk Officer, is responsible for the day-to-day management of risks we face, while our board of directors, as a whole
and through its committees, has responsibility for the oversight of risk management. In its risk management oversight role, the board
of directors has the responsibility to satisfy itself that the risk management processes designed and implemented by management are adequate
and functioning as designed. To do this, the Chairman of the Board meets regularly with management to discuss strategy and risks facing
the Company. Senior management attends board meetings and is available to address any questions or concerns raised by the board on risk
management. The Chairman of the Board and independent members of the board of directors work together to provide strong, independent oversight
of the Company’s management and affairs through its standing committees and, when necessary, special meetings of independent directors.

Primary responsibility for
areas of risk oversight is allocated among our standing committees as follows:

| Committee                           | Primary Areas of Risk Oversight                                                                                                                                                                                                              |
| Audit Committee                     | Risks and exposures associated with financial matters, particularly financial reporting, tax, accounting, disclosure, internal control over financial reporting, financial policies, investment guidelines and credit and liquidity matters. |
| Nominating and Governance Committee | Risks and exposures associated with leadership, succession planning and corporate governance.                                                                                                                                                |
| Compensation Committee              | Risks and exposures associated with executive compensation programs and arrangements, including incentive plans.                                                                                                                             |
| Information Technology Committee    | Risks and exposures associated with technology and technology-related matters,