Plumas Bancorp (NASDAQ:PLBC) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements ofCertain Officers.
On December 19, 2018, the Board of Directors of Plumas Bancorp (the “Company”) approved the Company’s cash non-equity incentive plan for 2019 (the “2019 NEI”, the “Plan”). Eligible employees under the 2019 NEI include all employees of the Company’s subsidiary, Plumas Bank (the “Bank”), who are regularly scheduled to work at least 20 hours per week. The aggregate bonus pool is comprised of two pools, one for officers of the Company and one for all other employees. The officers’ portion represents 90.9% of the combined pools. Incentives are payable under the 2019 NEI once the Bank has reached 80% of targeted pretax, pre-bonus income. The maximum total bonus available for distribution is $1.9 million at 120% of targeted pretax, pre-bonus income and the maximum total bonus available for the officers’ pool would be $1.7 million. At target, the officers’ bonus pool would total $1.2 million. Up to 13% of the officers’ pool could be allocated to the Company’s Chief Executive Officer (“CEO”) and President. Executive Vice Presidents (“EVPs”) each can earn up to 5% of the officers’ bonus pool.
Under the 2019 NEI, the cash incentive payment to the Company’s CEO and President will be based 46% on pretax, pre-bonus income targets, 15% upon the attainment of performance goals, and 15% upon various performance metrics with the remaining 24% based on the CEO’s performance during 2019, as evaluated by the Company’s Corporate Governance Committee, which serves as the Company’s compensation committee. Cash incentive payments for the Company’s EVPs will be based 56% on pretax, pre-bonus income targets, 16% upon the attainment of performance goals, and 8% upon various performance metrics with the remaining 20% based on the CEO’s evaluation of the EVP’s performance during 2019. Goals for the CEO include targeted increases in loans and deposits, continued improvement in asset quality, implementation of an Electronic Document Management System (EDMS), and development of a company training program. Metrics include targeted levels of ROE and ROA (calculated on a pre-tax basis) compared to a select group of peer institutions. At target, the maximum amount of incentive payment that can be earned by the Company’s CEO is $154,000 and for each EVP the maximum incentive payable at target would average $59,000. At 120% or more of target, the maximum amount of incentive payment that can be earned by the Company’s CEO is $222,000 and for each EVP the maximum incentive payable would average $86,000. The Company’s Board of Director has the ability to terminate or modify the Plan and all payouts under the Plan are subject to approval by the Company’s Corporate Governance Committee. The Plan does not give any employee the right to or guarantee of continued employment.
About Plumas Bancorp (NASDAQ:PLBC)
Plumas Bancorp is a bank holding company. The Company’s primary subsidiary is Plumas Bank. The Bank is a California state-chartered bank. The Federal Deposit Insurance Corporation (the FDIC) up to maximum insurable amounts insures the Bank’s deposit accounts. The Bank operates through its approximately 10 branch networks. The Bank maintains approximately 15 automated teller machines (ATMs) tied in with statewide and national networks. In addition to its branch network, the Bank operates lending offices specializing in government-guaranteed lending in Auburn, California and Beaverton, Oregon, a commercial/agricultural lending office located in Chico, California, and a commercial loan office located in Reno, Nevada. The Bank’s loan portfolio consists commercial real estate loans; commercial and industrial loans; consumer loans; agricultural loans; residential real estate loans, and construction and land development loans.
