This excerpt taken from the PBCT 8-K filed Apr 17, 2009.
Item 8.01. Other Events.
The Compensation and Nominating Committee of the Companys Board of Directors recently approved a change in the methodology used for calculating the amount payable pursuant to long-term cash bonus (LTIP Bonus) awards. For 2009 and future years, this amount will be determined by reference to total shareholder return over a specified period rather than by reference to a performance measure based on earnings per share. Total shareholder return, or TSR, is a measure which combines share price appreciation and dividends paid over a specified period to show the total economic return on a share of stock.
The amount paid out pursuant to an LTIP Bonus award will continue to be determined over a three-year performance cycle. One-third of the payout will depend on the Companys TSR for the three-year period ending on December 31 of the first year of the applicable performance cycle; one-third will depend on the Companys TSR for the three-year period ending on December 31 of the second year of the applicable performance cycle; and one-third will depend on the Companys TSR for the three-year period ending on the last day of the applicable performance cycle.
The Companys TSR for a given measurement period will be assigned a percentile ranking in comparison to the TSR results for members of a designated peer group over the same period. The amount allocated in a given year for future payment to the recipient of an LTIP Bonus will be determined by the Companys percentile ranking, with a maximum allocation being made if the Companys TSR is in the 75th percentile of the peer group, and no allocation being made if the Companys TSR is below the 25th percentile of the peer group.
Amounts previously allocated for payment pursuant to LTIP Bonus awards made with respect to the 2007-2009 performance cycle and for the 2008-2010 performance cycle (i.e., amounts based on Company performance in 2007 and 2008) were calculated using an earnings-per-share-based methodology. These amounts will not be affected by the changes described above. Amounts to be allocated for these LTIP Bonuses with respect to 2009 (in the case of the 2007-2009 and the 2008-2010 performance cycles) and for 2010 (in the case of the 2008-2010 performance cycle) will be determined by using the new TSR-based methodology.
The change in methodology is expected to result in better alignment of the objectives of the LTIP Bonus with the Companys long-term financial results and shareholder interests.
This excerpt taken from the PBCT 8-K filed Dec 26, 2007.
Item 8.01. Other Events.
On December 26, 2007, Peoples United Financial, Inc. (Peoples United) and Chittenden Corporation (Chittenden) issued a press release announcing the preliminary results of elections made by Chittenden stockholders as to the form of merger consideration to be received in the pending merger of Chittenden with and into Peoples United.
A copy of a press release announcing the preliminary results of the election process is being filed herewith as Exhibit 99.1.