Citizens Financial Services Inc . (NASDAQ:OTC:CZFS), a state commercial bank headquartered in Mansfield, Pennsylvania, announced an amendment to its Supplemental Employee Retirement Plan (SERP) on Monday. The change specifically affects the SERP benefit of the company's President and Chief Executive Officer, Randall E. Black.
The Board of Directors approved the third amendment to the SERP on June 18, 2024. This modification alters the calculation of Mr. Black's "Final Average Pay," which is instrumental in determining his SERP benefit.
Previously, the Final Average Pay was based on his average annual compensation during the three consecutive calendar years prior to his termination or a role change that reduces his salary. The new amendment allows for the Final Average Pay to be calculated using his highest average annual compensation from any three non-consecutive calendar years within the ten years preceding his termination.
This adjustment provides a potentially more favorable basis for calculating the retirement benefit, reflecting the highest earning periods during Mr. Black's tenure rather than being constrained to consecutive years immediately before the termination.
The details of the amendment have been outlined in Exhibit 10.1 of the SEC filing, which was made public today. This filing ensures transparency of the compensatory arrangements for certain officers of the bank as required by regulations.
Citizens Financial (NYSE:CFG) Services Inc. operates within the financial sector, providing banking services to its customers. The amendment to the executive compensation plan comes as part of the company's ongoing efforts to align its leadership compensation with the interests of its stakeholders and the long-term success of the bank.
The information provided in this article is based on the latest 8-K filing by Citizens Financial Services Inc. with the Securities and Exchange Commission.
InvestingPro Insights
In light of the recent compensation plan amendments at Citizens Financial Services Inc. (NASDAQ:CZFS), it's worth noting that the company's stock has experienced notable fluctuations. According to InvestingPro data, CZFS has a market capitalization of $188.26 million and a P/E ratio of 11.05, which has adjusted to 7.69 in the last twelve months as of Q1 2024. The company has also demonstrated a solid revenue growth of 11.4% over the same period. These metrics suggest a potentially undervalued stock, especially considering the company's consistent dividend payments over the past 32 years.
InvestingPro Tips highlight that despite recent price declines, analysts predict CZFS will be profitable this year, having been profitable over the last twelve months. This insight, coupled with a dividend yield of 4.95% as of mid-2024, may interest investors looking for stable income-generating stocks. For those seeking deeper analysis, there are additional InvestingPro Tips available, which can be accessed with a special offer: use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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