Corporate GovernanceJun 24, 2026, 04:13 PM
Carter Bankshares Updates Executive Employment Pacts
AI Summary
Carter Bankshares, Inc. and Carter Bank & Trust entered into amended and restated employment agreements and a change of control agreement with several key officers, including CEO Litz H. Van Dyke, President Bradford N. Langs, CFO Wendy S. Bell, COO Matthew M. Speare, and Chief Credit Officer Tony E. Kallsen. These updates reflect current positions and salaries, expand clawback provisions, clarify 'Cause' definitions, and ensure compliance with new Virginia law impacting noncompetition clauses. The changes aim to align agreements with current best practices and regulatory requirements.
Key Highlights
- Employment agreements updated for current officer positions, base salaries, and terms.
- Clawback provision expanded to include all applicable legal, regulatory, and company policy requirements.
- Gross-up provision to cover taxes on automobile allowance was removed from agreements.
- Definition of 'Cause' clarified to include breach of duty of loyalty and require 'willful' action for certain terminations.
- Termination and severance provisions updated to comply with new Virginia noncompetition law, adding one month severance.
- Confidentiality and noncompetition restrictive covenants updated for compliance and best practices.
- Provision for full payout and termination upon Change of Control under IRC Section 409A was removed.
Price Impact
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