pab bankshares, inc. - SNL Financial

(1) The listed stock option grants were approved by the Board of Directors under the Company’s 1999 Stock Option Plan to each of the named
executive officers listed. The option exercise prices are based on the closing price of the Company’s stock listed on NASDAQ on the grant
date. These options were granted subject to a five-year ratable vesting schedule.
(2) The listed stock option grants were approved by the Board of Directors under the Company’s 1999 Stock Option Plan to each of the named
executive officers listed. The option exercise prices were based on a discount to the market price with that discount representing the value
given to the officer in lieu of a raise. The options were granted subject to a two year cliff vesting and a five year option period.
There were no exercises of stock options made by the Company’s named executive officers during the last completed
fiscal year.
Perquisites and Other Benefits
The Compensation Committee periodically reviews the perquisites and other benefits available to executive
management. As reflected in the Summary Compensation Table, the aggregate cost of these perquisites and other benefits
was $800,030 in 2009, $63,253 in 2008 and $80,785 in 2007 for the named executive officers. Included in 2009 is
$730,000 to Mr. Welsh for severance payments related to his termination of employment with the Company and $8,524 as
a temporary living allowance to Mr. Hammond to offset his costs of relocating to Valdosta, Georgia. We have not made
the $730,000 severance payment to Mr. Burke since prior to making such payment we must receive permission from our
regulators, which has not been granted at this time. Other elements more fully described below include 401(k) plan
matching and profit-sharing contributions, stock purchase program matching contributions and other employee and
medical benefits. Finally, since routine business travel and mobile telecommunications access are often necessary, the
Company provides senior management (including the named executive officers) with monthly auto and cell phone
allowances to compensate them for their use of personal assets for business purposes.
As mentioned above, the Company offers a 401(k) plan to eligible employees (including the named executive
officers). The 401(k) plan allows participants to defer a portion of their compensation and provides that the Company
may match a portion of the participants’ deferred compensation. In 2009, the Company matched 75 cents for every dollar
contributed by a participant up to an annual threshold equal to the lesser of 6% of each participant’s eligible compensation
or the limit established by the Internal Revenue Service for 401(k) plans. The plan also provides for non-elective and
discretionary profit sharing contributions to be made by the Company at the sole discretion of the Board of Directors. In
the first quarter of 2008, approximately 3.0% of each participant’s eligible compensation was contributed as the
discretionary profit sharing contributions for fiscal year 2007. The Company did not contribute a discretionary profit
sharing contribution for fiscal year 2008 or 2009.
The Company also offers an Employee and Director Stock Purchase Program to eligible employees (including the
named executive officers) and directors as a convenient means of purchasing for long term investment, and not for short
term speculative gain, the common stock of the Company and thereby promote interest in the Company’s continuing
success, growth and development. The program allows for a participant to purchase up to a maximum of $2,000 per year
of the Company’s common stock with the Company matching 50% of the participant’s purchase.
Executive management is also eligible to participate in the Company’s other benefit plans on the same terms as
other employees. These plans include paid vacation leave, medical and dental insurance, annual physical examinations,
employee assistance programs, employee and dependant group term life insurance, and employee and spousal disability
insurance.
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