Company: PFIS
Filing Date: 2025-03-07
Form Type: PRE 14A
Source: 0001104659-25-021551
Chunk: 21

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-03-07
Form: PRE 14A
Chunk 21
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 TO SERVE UNTIL THE 2028 ANNUAL MEETING OF SHAREHOLDERS AND UNTIL HIS OR HER SUCCESSOR HAS BEEN ELECTED AND QUALIFIED.

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Proposal 2 – To Approve, on an Advisory Basis,
the Compensation of our Named Executive Officers</div>

As required pursuant to Section 14A
of the Securities Exchange Act of 1934, as amended (commonly referred to as the “Exchange Act”), we are providing our shareholders
with the opportunity to vote, on an advisory basis, on the compensation of our named executive officers as described in this proxy statement.
This proposal, commonly known as a “say-on-pay” proposal, gives our shareholders the opportunity to express their views on
the compensation of our named executive officers. We are currently soliciting this advisory vote on an annual basis.

Even though this say-on-pay
vote is advisory and therefore will not be binding on us, the members of our compensation committee and board of directors value the opinions
of our shareholders. Accordingly, to the extent there is a significant vote against the compensation of our named executive officers,
we will consider our shareholders’ concerns and the compensation committee will evaluate what actions may be appropriate to address
those concerns.

Our executive compensation
program is designed to attract, reward, and retain key employees, including our named executive officers, who are critical to our success.
Under this program, our named executive officers are rewarded for the achievement of specific short-term and long-term goals that enhance
shareholder value. Shareholders are urged to read the “Compensation Discussion and Analysis” and “Executive Compensation”
sections of this proxy statement for greater detail about our executive compensation programs, including information about the fiscal
year 2024 compensation of our named executive officers.

We are asking our shareholders
to indicate their support for the compensation of our named executive officers as described in this proxy statement by voting in favor
of the following resolution:

“RESOLVED, that the
compensation paid to the Company’s named executive officers, as disclosed in this proxy statement pursuant to Item 402 of Regulation
S-K, including the Compensation Discussion and Analysis, compensation tables and narrative discussion, is hereby APPROVED.”

Recommendation

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE FORTHE PROPOSAL TO APPROVE, ON AN ADVISORY BASIS, THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS BY THE ADOPTION OF THE FORE