Company: PFIS
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0001104659-25-030614
Chunk: 49

Company: PEOPLES FINANCIAL SERVICES CORP.
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 49
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 insurance benefits to Mr. Best. See additional discussion
below under the headings “Craig W. Best Employment Agreement.” We also provide split-dollar life insurance benefits to certain
other officers, including Mr. Tulaney.

Perquisites

The compensation committee
regularly reviews our executive perquisites and believes they are appropriate and modest when compared to peers and are necessary to attract
and retain high-caliber talent. During 2024, we provided a vehicle allowance or use of a company vehicle to Messrs. Best, Tulaney
and Koplin, as they are required to entertain business clients or otherwise travel in connection with their duties. The compensation committee
also believes that country clubs can serve as appropriate forums for building client relationships and for community interaction. We reimburse
Messrs. Best, Tulaney, Koplin, Kirtley and Anderson for the cost of country and dining club memberships.

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The Role of Management in Determining Compensation

For 2024, our chief executive
officer reviewed each of the other named executive officer’s annual performance, discussed the performance review with the compensation
committee, and made recommendations to the compensation committee with respect to the compensation of the other named executive officers.
Our chief executive officer does not participate in discussions on his own compensation.

The Role of the Compensation Committee

In accordance with the compensation
committee charter, among other things, the compensation committee is responsible for the review and approval of our named executive officers’
base salaries and incentive opportunities, the administration of our benefit plans, and the recommendation to our board of directors of
new compensation programs or changes in existing compensation programs. The committee may refer any matter that it has the authority to
approve, together with the committee’s report and recommendation, to the full board for approval, unless such matter is required
to be approved by an independent compensation committee by applicable law, regulation or listing standard. As a matter of practice, the
committee routinely refers key items pertaining to executive compensation, such as base salary increases, the size and performance targets
associated with awards under the Cash Incentive Plan and equity incentives, and the offering of special retirement agreements, to the
board with a recommendation of the committee.

Operating within the framework
of duties and responsibilities established by the board, the compensation committee’s role is to assure our compensation strategy
is aligned with the long-term interests of our shareholders; our compensation structure is fair and reasonable; and compensation reflects
both corporate and individual performance.

Compensation Committee Consultants

The compensation