Corporate GovernanceJul 2, 2026, 04:33 PM
Central Pacific Financial Enters New Change in Control Agreements
AI Summary
Central Pacific Financial Corp. has entered into new Change in Control Agreements with its executive officers, including CEO Arnold D. Martines, effective June 30, 2026. These agreements provide severance benefits for approximately three years, with the CEO eligible for 3.0 times his base salary and average annual bonus, while other executives receive 2.0 times. The benefits are triggered by specific involuntary or voluntary terminations following a change in control and include a "best net" approach for Section 280G excise taxes.
Key Highlights
- Change in Control Agreements for executive officers, including CEO, effective June 30, 2026.
- Agreements have an initial term of approximately three years, expiring June 30, 2029.
- CEO Arnold D. Martines eligible for 3.0x base salary and 3.0x average annual bonus.
- Other executive officers eligible for 2.0x base salary and 2.0x average annual bonus.
- All executives receive 18 months COBRA premium, full equity vesting, and up to $25,000 for outplacement.
- Agreements include a "best net" approach for Section 280G excise tax, with no gross-up payment.
- Benefits triggered by involuntary termination without cause or voluntary for good reason following a change in control.
Price Impact
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