Company: EMYB
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001449794-25-000004
Chunk: 26

Company: Embassy Bancorp, Inc.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 26
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 operation, relying greatly on the knowledge and experience of its executive management team, and, where appropriate, the outsourcing of certain functions to high quality vendors, to do so. This level of efficiency requires that individual members of the Company’s executive management team assume roles that are most often held by multiple individuals at banks within the Company’s peer group. For example, David M. Lobach, Jr. serves as Chairman of the Board, as well as President and Chief Executive Officer, Judith A. Hunsicker serves as Chief Operating Officer, Chief Financial Officer and CRA Officer, Diane M. Cunningham oversees retail banking and consumer lending, as well as marketing, and Lynne M. Neel oversees the finance department, deposit and loan operations, electronic banking and investor relations. This multidisciplinary approach is replicated throughout the Company. This structure makes it difficult, if not impossible, to conduct a true “apples-to-apples” comparison of the compensation of the Company’s executive management team with that of its peers. Therefore, in considering compensation, the Board pays particular attention to other, objectively measurable criteria, such as the employee ratios described above and the salary and benefit costs of its peers as a percent of average assets, as described below.Mr. Lobach and Ms. Hunsicker voluntarily took no pay raises for the year ended December 31, 2024.The entire Executive Leadership team also voluntarily took no pay raises for the year ended December 31, 2023, and the percentage of bonuses taken for 2023 by the Executive Leadership team were reduced by 50% in order to support pay increases and bonuses to other team members.

For the year ended December 31, 2024, the Company’s team productivity benchmarks were ahead in comparison to those institutions that the Company considers its peers (banks headquartered in Pennsylvania with assets between $100 million and $5 billion). Importantly, it should be noted that those financial institutions the Company considers its peers have 61% greater overall salary expense as a percent of average assets than that of the Company’s. For the year ended December 31, 2024, the Company’s net overhead was 1.36%, compared to the peer group average net overhead ratio of 1.84%. When one considers these factors together with the return on investment on an employee-by-employee basis, as indicated by the employee ratios, the Board feels strongly that employees are fairly compensated for their efforts. In other words, because the Company has fewer employees supporting a greater number of assets, loans, deposits,