First Financial Corporation (NASDAQ:THFF), a state commercial banking organization based in Indiana, has entered into new employment agreements with three of its top executives, according to a recent 8-K filing with the Securities and Exchange Commission.
On Monday, the company disclosed that it had finalized agreements with Rodger A. McHargue, Senior Vice President and Chief Financial Officer; Stephen P. Panagouleas, Senior Vice President and Chief Credit Officer; and Mark A. Franklin, Senior Vice President and Chief Lending Officer. These agreements, effective from July 1, 2024, establish an initial employment term of 24 months for each executive in their current roles, with the possibility of extension for additional one-year periods upon appropriate notice from the company's compensation committee.
The annual base salaries set for the executives from the start of 2024 are $360,000 for McHargue, $295,000 for Panagouleas, and $296,928 for Franklin. The agreements allow for potential salary adjustments and include participation in bonus and fringe benefit plans available to the company's senior management.
The filing also outlines conditions under which the executives would receive payments if their employment is terminated. These include full salary and bonuses through the end of their term if terminated without just cause or if they leave for good reason, except within 12 months after a change in control. In the case of a change in control, a severance benefit calculation is detailed, which includes potential excise taxes under Internal Revenue Code Sections 280G and 4999.
Additionally, the agreements contain confidentiality, non-solicitation, and non-compete clauses, restricting the executives from competing against First Financial Corporation or its subsidiary within specified geographic limits for a set period post-termination.
In other recent news, First Financial Corporation has renewed the employment agreement of its President and CEO, Norman D. Lowery. The new contract, which takes effect from July 1, 2024, extends Lowery's tenure for an initial 24 months, with the option of a one-year extension. As part of the agreement, Lowery will receive an annual base salary of $650,000, subject to increases, and will participate in bonus and fringe benefit plans.
The contract stipulates conditions for severance benefits and includes clauses for compliance with Internal Revenue Code Section 280G, confidentiality, non-solicit, and non-compete. These developments reflect First Financial Corporation's commitment to stable leadership and alignment of the CEO's interests with the company and its shareholders. All terms of the agreement are detailed in the full text of the document filed as Exhibit 10.1 to the Form 8-K. This information is based on recent developments within the company.
InvestingPro Insights
As First Financial Corporation (NASDAQ:THFF) secures its leadership team with new employment agreements, it's worth noting the company's financial health and market performance. According to InvestingPro data, THFF currently holds a market capitalization of $478.47 million, with a price-to-earnings (P/E) ratio of 9.35, reflecting investor sentiment on the company's earnings capacity. Despite a challenging past year with a revenue decline of 9.29%, THFF has maintained a solid operating income margin of 32.6% over the last twelve months as of Q2 2024, demonstrating efficient management of its operations.
InvestingPro Tips highlight that THFF has raised its dividend for 5 consecutive years and has maintained dividend payments for an impressive 42 consecutive years, indicating a commitment to shareholder returns. Moreover, the company has experienced a strong return over the last month, with a 13.59% price total return, which may interest investors looking for recent positive momentum. For those seeking a deeper dive into THFF's investment potential, InvestingPro offers additional tips and metrics, including analyst predictions and fair value assessments, to aid in making informed decisions.
Investors following First Financial Corporation's corporate developments may also be encouraged by the fact that analysts predict the company will remain profitable this year, as per InvestingPro Tips. With 7 additional tips available on InvestingPro, investors have access to a breadth of insights to further evaluate the company's prospects in light of its latest executive compensation agreements and overall financial strategy.
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