Summit Financial Group, Inc. (NASDAQ:SMMF) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02 Departure of Directors or Certain Officers, Election of Directors; Appointment of Certain Officers, Compensatory Arrangements of Certain Officers
On February 8, 2018, the Compensation and Nominating Committee of the Board of Directors of Summit Financial Group, Inc. (the “Company”) (the “Committee”) approved the Ninth Amendment to the Amended and Restated Employment Agreement of H. Charles Maddy, III, the Company’s Chief Executive Officer, to (i) extend the term of Mr. Maddy’s Employment Agreement dated March 4, 2005, for an additional year until March 4, 2021, and (ii) amend the definition of disability to comply with the final rules related to disability claims procedures recently issued by the U.S. Department of Labor. The A copy of the Ninth Amendment to the Amended and Restated Employment Agreement is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
On February 8, 2018, the Committee adopted the Executive Officer Management Incentive Plan for 2018. The Executive Officer Management Incentive Plan for 2018 provides eligible participants, including executive officers of the Company, with the opportunity to earn a bonus equal to 25% of the executive officer’s base salary as of January 1, 2018 multiplied by a multiplier based on the Company’s return on average tangible equity (“ROATE”) for 2018. The targeted range for the Company’s ROATE for 2018 is 11.50 to 12.49 percent. If the Company’s actual ROATE for 2018 is within this targeted range, each executive officer will receive an incentive payment equal to 25% of their respective annual base salary as of January 1, 2018 (the “Targeted Incentive”).
If the Company’s actual ROATE for 2018 is greater than the targeted range, executive officers will be eligible to receive an incentive that is greater than the Targeted Incentive; conversely, if the Company’s actual ROATE for 2018 is less than the targeted range, executive officers will be eligible to receive an incentive that is less than the Targeted Incentive. No incentive payments will be made if the Company’s actual ROATE is less than 9.50%.
No incentives may be made under the Executive Officer Management Incentive Plan for 2018 if at December 31, 2018 through the time of payment of the incentive in 2019, the Company or any affiliate is subject to any active or pending, formal or informal, agreement or enforcement action to which any bank regulatory authority is a party, including, but not limited to a memorandum of understanding, written agreement, or order of cease and desist.
A copy of the Executive Officer Management Incentive Plan for 2018 is included as Exhibit 10.2 and is incorporated herein by reference. The above summary is qualified in its entirety by reference to the Executive Officer Management Incentive Plan for 2018 attached as Exhibit 10.2.
Section 9 – Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(d)The following exhibits are filed as part of this Form 8-K.
SUMMIT FINANCIAL GROUP INC ExhibitEX-10.1 2 exhibit101ninthamendmentto.htm EXHIBIT 10.1 Exhibit EXHIBIT 10.1NINTH AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENTTHIS NINTH AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”),…To view the full exhibit click here
About Summit Financial Group, Inc. (NASDAQ:SMMF)
Summit Financial Group, Inc. (Summit) is a financial holding company. The Company provides community banking services primarily in the Eastern Panhandle and South Central regions of West Virginia and the Shenandoah Valley, and Northern region of Virginia. The Company provides these services through its community bank subsidiary, Summit Community Bank (Summit Community or the Bank). The Company operates through two segments: community banking, and insurance & financial services. The community banking segment consists of its full service banks, which offer customers traditional banking products and services through various delivery channels. The insurance & financial services segment includes three insurance agency offices that sell insurance products. The Company also operates Summit Insurance Services, LLC in Moorefield, West Virginia and Leesburg, Virginia, which provides insurance brokerage services to individuals and businesses.