Peoples Financial Corporation Executive Officer Bonus Plan Description

Summary

Peoples Financial Corporation's Compensation Committee has established a bonus plan for its executive officers, including the CEO, Executive Vice President, and other named executives. Bonuses are awarded based on the company's return on average assets (ROA), with specific targets set by the Committee. Depending on the company's ROA performance, executives can earn a bonus up to a maximum percentage of their salary, with higher ROA resulting in higher bonus percentages. The plan outlines the ROA targets and corresponding bonus percentages for each executive level.

EX-10.1 2 d74985exv10w1.htm EX-10.1 exv10w1

Exhibit 10.1

Description of Bonus Plan

The Compensation Committee (the “Committee”) of the Board of Directors of Peoples Financial Corporation (the “Company”) awards bonuses to the Company’s executive officers based upon pre-determined performance objectives. The executive officers are eligible to receive a bonus which is based on the financial performance of the Company. The specific formula and pre-determined goals were established by the Committee using the Company’s return on average assets (“ROA”). The bonus calculation, which is approved by the Committee, allows the executive officer to earn up to a maximum percentage of their salary on established ROA targets. The targets and bonus calculations as a percentage of salary and targets are:


	Base			Base + 1			Base + 2			Base + 3			Maximum


ROA Target		.670	%		.800	%		.925	%		1.050	%		1.175	%

Chief Executive Officer		15.000	%		18.750	%		22.500	%		26.250	%		30.000	%

Executive Vice President		12.500	%		15.630	%		18.750	%		21.880	%		25.000	%

All Other Named Executive Officers		10.000	%		12.500	%		15.000	%		17.500	%		20.000	%