EXHIBIT 10.1

 

Description of Named Executive Officer Compensation Arrangements

 

Total compensation to the named executive officers (as defined in Securities and
Exchange Commissions Regulation S-K Item 402(a)(3)) of Crescent Banking Company
(the “Company”) and its subsidiary Crescent Bank & Trust Company (the “Bank”) is
primarily composed of three types of compensation: (1) base salary,
(2) short-term annual cash incentive compensation, and (3) long-term
equity-based compensation awarded under the Company’s 1993 Employee Stock Option
Plan and 2001 Long-Term Incentive Plan (collectively, the “Long-Term Incentive
Plans”).

 

Base Salary

 

Individual base salaries and increases for the Company’s named executive
officers, other than the President and Chief Executive Officer, are recommended
annually by the Chief Executive Officer to the Compensation Committee and are
determined by the Company’s Board of Directors, upon recommendation by the
Compensation Committee. The philosophy of the Company is that compensation
should be based on individual annual performance and the performance of the
Company, and should be competitive with the market. With respect to the Chief
Executive Officer, the Compensation Committee reviews the financial performance
of the Company as well as published data regarding compensation of chief
executive officers of comparable financial institutions located in comparable
markets and of local banks and thrifts. The Compensation Committee recommends
the compensation of the Chief Executive Officer to the Board of Directors for
final approval. The approval process takes place without the presence of the
Chief Executive Officer.

 

Set forth below are the 2006 base salaries of the following named executive
officers of the Company.

 

Named Executive Officer

--------------------------------------------------------------------------------

   Base Salary

--------------------------------------------------------------------------------

J. Donald Boggus, Jr.

   $ 265,000

A. Bradley Rutledge, Sr.

     168,000

Anthony N. Stancil

     168,000

Leland W. Brantley, Jr.

     155,000

Bonnie B. Boling

     120,500

--------------------------------------------------------------------------------

Short-Term Annual Cash Incentive Compensation

 

Short-term annual cash incentive compensation in the form of bonuses is intended
to align short-term cash compensation of eligible Company officers with
individual performance and Company performance. The Compensation Committee,
using recommendations of the Chief Executive Officer, approves annual bonus
payments to those officers who have made superior contributions to the Company’s
profitability, as measured and reported through individual performance goals
established at the beginning of the year. This philosophy controls compensation
expenses and rewards past performance by reducing the need for significant
annual base salary increases.

 

Set forth below are the annual cash bonuses approved for payment to the
Company’s named executive officers for the year ended December 31, 2005.

 

Named Executive Officer

--------------------------------------------------------------------------------

   Bonus

--------------------------------------------------------------------------------

J. Donald Boggus, Jr.

   $ 100,000

A. Bradley Rutledge, Sr. (1)

     140,000

Anthony N. Stancil (1)

     140,000

Leland W. Brantley, Jr.

     100,000

Bonnie B. Boling

     55,000

--------------------------------------------------------------------------------

(1) The total bonuses awarded to Messrs. Stancil and Rutledge in 2005 include
one-time bonuses of $75,000 to each of Messrs. Stancil and Rutledge in July,
2005. These bonuses were neither determined nor awarded as part of the Company’s
short-term cash incentive compensation arrangement, although the Compensation
Committee took into account the award of these bonuses when it considered
appropriate year-end bonuses for Messrs. Rutledge and Stancil in accordance with
such arrangements.

 

Annual cash bonuses for 2006 will be determined in late 2006 or early 2007. The
Company expects individual 2006 bonuses to be determined using the same criteria
as applied to determine 2005 bonuses.

 

Long-Term Equity-Based Compensation

 

The Company attempts to align the interests of key employees, including its
named executive officers, with those of the Company’s shareholders by awarding
stock options to these employees under the Company’s Long-Term Incentive Plans.
Stock options are awarded annually, upon the recommendation of the Company’s
Chief Executive Officer and approval of the Salary and Benefits Committee, to
eligible employees who have made a significant contribution to the Company’s
long-term growth.

 

The Company expects individual grants during 2006 under its Long-Term Incentive
Plans to be determined using the same criteria as applied to determine grants in
2005. Additional information relating to the Company’s Long-Term Incentive Plans
and grants of stock options and restricted stock awards during 2005 will be
included in the Company’s 2006 Proxy Statement to be filed with the Commission
on Schedule 14A.

 

Other Compensation

 

In addition to base salary, short-term annual cash incentive compensation and
long-term equity-based compensation, certain officers of the Company and the
Bank, including the named executive officers, receive compensation in the form
of split-dollar life insurance for which the Company or the Bank pays the
premiums. Certain officers, including the named executive officers, may also
participate in the Executive Supplemental Retirement Plan, the benefits of which
are funded from life insurance purchased and owned by the Company or the Bank.
The compensation paid to the Company’s named executive officers under these
compensation arrangements during 2005 will be set forth under “Other
Compensation” in the Summary Compensation Table of the Company’s 2006 Proxy
Statement to be filed with the Commission on Schedule 14A.

 

- 2 -