Renasant Corporation (NYSE:RNST), a Mississippi-based commercial banking institution with a market capitalization of $2.24 billion, has filed an 8-K report with the Securities and Exchange Commission on December 20, 2024, detailing significant amendments to the employment agreements of its top executives.
According to InvestingPro data, the bank has maintained dividend payments for 32 consecutive years and currently offers a 2.54% dividend yield. The stock is currently trading near its Fair Value based on comprehensive analysis.
Effective January 1, 2025, C. Mitchell Waycaster, the Executive Vice Chairman and Chief Executive Officer, will transition from his CEO role on May 1, 2025, as part of a planned succession strategy. Following this date, he will continue as Executive Vice Chairman, with his involvement reduced to a maximum of 60% of his previous commitment.
His contract has been extended until April 30, 2027, with automatic one-year renewals unless a 60-day non-renewal notice is given by either party.
With the shift in responsibilities, Waycaster's salary will be adjusted to 60% of its value prior to the transition date, starting on the transition date. From January 1, 2027, his salary will further decrease to one-third of the December 31, 2026 amount. His annual cash bonus for 2025 will be pro-rated based on his service before and after the transition, and he will no longer participate in the Performance Based Rewards Plan (PBRP) from 2026 onward.
Additionally, Waycaster received a $100,000 retention bonus, contingent on his continued employment through December 31, 2026, with provisions for acceleration under certain circumstances. He is also slated to receive equity awards for 2025 and 2026, valued at $700,000 and $170,000 respectively, both vesting on December 31, 2026.
Kevin D. Chapman, the President and Chief Operating Officer, had his change-in-control severance terms enhanced, increasing the payout multiple from 2.5 to 2.99 of his base compensation and average cash bonus. His agreement also includes confidentiality updates analogous to Waycaster's.
In other recent news, Renasant Corporation reported strong financial results for the third quarter, including earnings of $72.5 million, or $1.18 per diluted share, boosted by a significant after-tax gain of $39 million from the sale of an insurance agency. Net interest income also saw an increase of $6 million due to higher loan yields, and total deposits grew by over $285 million. The company's loan pipeline increased to $176 million, with loan production at $507 million.
In addition to the impressive financial results, Renasant Corporation announced the adoption of amended and restated bylaws and the approval of a merger with The First Bancshares (NYSE:FBMS), Inc. The merger agreement received overwhelming support from shareholders, with 51,923,496 votes in favor. The merger is expected to close in the first half of 2025.
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