Company: PFIS
Filing Date: 2025-03-07
Form Type: PRE 14A
Source: 0001104659-25-021551
Chunk: 45

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-03-07
Form: PRE 14A
Chunk 45
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2024, we compensated our named executive officers, identified below, with a combination of base salary, time-vested equity awards, discretionary
bonus compensation, and benefit plans and perquisites which the compensation committee believes were comparable to other financial institutions
of similar size in our region.

At the time of the FNCB merger,
it was contemplated that our former chief executive officer, Craig W. Best, would remain in his position until the one-year anniversary
of the merger. In October 2024, however, given the progress that had been made with the integration of FNCB into Peoples and FNCB
and the successful completion of the Bank’s system conversion, the Company and Mr. Best determined that he was able to leave
at the end of 2024, and the compensation committee approved a separation agreement with Mr. Best. See “Craig W. Best Separation
Agreement” beginning on page 37.

Benchmarking

Periodically, the compensation
committee compares our senior management compensation levels with comparable levels in industry benchmark studies and peer group data
to gain a general knowledge of compensation programs in the industry.

Components of the Compensation Program

During 2024, our executive
compensation program included four key elements: base salary, annual cash incentives, equity awards and benefit plans.

Base Salary

Base salary is the basic element
of our executive compensation program and the foundation for setting targets for incentive compensation awards. The compensation committee
determines the range of base salary by evaluating the duties, complexities and responsibilities of the applicable office; the level of
experience required, and the compensation payable for positions having similar scope and accountability as those in a peer group of banks.

For 2024, our compensation
committee reviewed each named executive officer’s individual performance, length and nature of experience and competency, and the
potential for advancement in determining the amount of pay adjustments to recommend to the board of directors. In connection with such
review, the base compensation for Craig W. Best remained the same at $472,420; Thomas P. Tulaney remained the same at $335,000; Neal D.
Koplin remained the same at $295,800; Timothy H. Kirtley increased from $255,000 to $265,000 and John R. Anderson III increased from $260,000
to $270,000.

Cash Incentive Plan

We maintain an annual cash
incentive plan (the “Cash Incentive Plan”) pursuant to which our designated executive officers