MUNSTER, IN—Finward Bancorp, a federally chartered savings institution, announced the inclusion of its Senior Vice President, Chief Financial Officer and Treasurer, Benjamin L. Schmitt, in its Executive Change in Control Severance Plan. The decision was made by the Compensation and Benefits Committee of the company's Board of Directors on August 7, 2024, and reported in a Form 8-K filing with the Securities and Exchange Commission on Tuesday.
The Severance Plan aims to maintain the commitment and objectivity of the management team in case of a change in control at Finward Bancorp or its subsidiary, Peoples Bank. Schmitt's participation, recommended by the CEO and approved by the Committee, comes with a waiver for the Severance Plan's standard three-year employment eligibility requirement.
Under the plan, if Schmitt’s employment is terminated without cause or if he resigns for good reason within the 18-month period following a change in control, he will receive a severance package. This package includes a cash payment equal to one year of his base salary and the higher of his last actual annual cash bonus or the target bonus for the year of termination.
Additionally, he will receive a lump sum equivalent to the annual COBRA premiums for his medical and dental coverage, as well as a sum equal to the annual life insurance premiums paid by the company.
The inclusion of Schmitt in the Severance Plan reflects Finward Bancorp's strategy to ensure stability and retain key executives during potential transitions. The details of the Severance Plan were previously outlined in an exhibit to the company's Quarterly Report on Form 10-Q filed on October 29, 2019.
Finward Bancorp trades on The NASDAQ Stock Market under the ticker FNWD. This news is based on a press release statement and the company’s recent SEC filing.
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