2011 Compensation Plan 8K (00962750).DOC

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549



FORM 8-K



Current Report Pursuant

to Section 13 or 15(d) of the

Securities Exchange Act of 1934



Date of Report (Date of earliest event reported): December 22, 2015



BAR HARBOR BANKSHARES

(Exact name of registrant as specified in its charter)



Maine

(State or other jurisdiction

of incorporation)

001-13349

(Commission

File Number)

01-0393663

(IRS Employer

Identification No.)



P.O. Box 400, 82 Main Street, Bar Harbor, ME

(Address of principal executive offices)

04609-0400

(Zip code)



Registrant’s telephone number, including area code:  (207) 288-3314 



Not Applicable

(Former name or former address, if changed since last report)



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




TABLE OF CONTENTS

Item 5.02 Departure of Directors or Certain Officers;

Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Page 3

 

 

Signatures

Page 5




Item 5.02.

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.


(e)  Compensatory Arrangements for Certain Officers.

  

On December 22, 2015 the Board of Directors of Bar Harbor Bankshares (the “Company”), upon the recommendation of the Company’s Compensation Committee, which, among other things, reviews and approves incentive plans for executive officers, approved the 2016 Annual Incentive Plan (the “Plan”) and designated target awards for fiscal year 2016 (calculated as a percentage of base salary) for certain executive officers of the Company and its wholly owned first tier bank and second tier trust company subsidiaries, including the Company’s named executive officers.


The Plan focuses on rewards for the achievement of specific goals that we believe are critical to the growth and profitability of the Company. The principal objectives of the plan are to:

·

Focus executive attention on key business metrics;

·

Align compensation with organizational and individual performance;

·

Encourage teamwork and collaboration across all areas of the Company to drive improved business results;

·

Motivate and reward the achievement of specific, measurable performance objectives;

·

Provide competitive total cash compensation;

·

Provide significant rewards for achieving and exceeding performance results; and

·

Enable the Company to attract and retain the talent needed to drive success.


In order for the Plan to activate, the Company must achieve a net income trigger. The performance period and Plan operate on a calendar year basis (January 1st to December 31st).  


The table below summarizes the incentive ranges for the 2016 Plan year as a percentage of base salary payout for the Company’s five named executive officers.


2015 Short-Term Incentive Targets

Below Threshold

Threshold

(50% of Target)

Target (100%)

Stretch

(150%) of Target

Curtis S. Simard,  

President and CEO


0%


19.00%


38.00%


57.00%

Gerald Shencavitz,

Executive Vice President and CFO


0%


14.00%


28.00%


42.00%

Richard B. Maltz,

Executive Vice President  

and Chief Risk Officer


0%


12.50%


25.00%


37.50%

Gregory W. Dalton,

Executive Vice President

Business Banking


0%


12.50%


25.00%


37.50%

Stephen M. Leackfeldt,

Executive Vice President,

Retail Banking


0%


12.50%


25.00%


37.50%







Plan team performance goals are based on net income and efficiency ratio measures.  In addition each participant has two to four individual goals that focus on either departmental or team performance such as lending growth, deposits growth, or asset quality measures.   The mix of these goals varies by role.  


In addition to the mix of a net income and an efficiency ratio measure, Mr. Simard has an asset quality matrix measure.   In addition to the overall team measures, Mr. Shencavitz’s model includes measures based on investment income and investment yield measured against peers. Mr. Maltz has the two team goals, the asset quality matrix measure, and a project implementation goal.  The awards to Messrs. Dalton and Leackfeldt include the two team goals along with loan and the asset quality matrix measure.  Mr. Dalton and Mr. Leackfeldt have a deposit growth measure and, in addition, Mr. Leackfeldt has a deposit rate measure.


The table below provides guidelines for the allocation of participant’s incentives for each performance component

Position

BHB/Team  Performance

Individual

Performance

Curtis S. Simard. President & CEO

75%

25%

Gerald Shencavitz, EVP and CFO

70%

30%

Richard B. Maltz, EVP

50%

50%

Gregory W. Dalton, EVP  

30%

70%

Stephen M. Leackfeldt, EVP

55%

45%


The Company has developed the Plan based on existing business, market and economic conditions.  If substantial changes occur that affect these conditions, the Company may add to, amend, modify or discontinue any of the terms or conditions of the Plan at any time.  The Compensation Committee may, at its sole discretion, waive, change or amend the Plan, as it deems appropriate.






SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 

BAR HARBOR BANKSHARES

(Registrant)

 

 

 

 

 

 

By:

/s/ Marsha C. Sawyer

 

Name: Marsha C. Sawyer

 

Title:   Corporate Clerk





Date:  December 23, 2015