| About Us | |
| | | We are Proud to Be Recognized as One of America’s Best Banks by Newsweek | |
$65M | | | 411 | | | 75% | | | 36% | | | 68% | |
invested in small business loan origination with 440 total loans | | | Organizations supported through charitable giving efforts | | | of employees provided funds to support charitable giving efforts | | | of members on our Board of Directors are women | | | of our management consists of women | |
$6.9M | | | 100% | | | $203K | | | 73% | |
currently committed to creating affordable housing | | | employee ethics training, completed annually | | | in employee owned charitable giving through the program Casual for a Cause (since inception) | | | of the Bar Harbor Bankshares workforce consists of women | |
$673K | | | 6,394 hrs | | | 100% | |
committed to nonprofits & educational organizations | | | Of employees volunteering at various organizations with 24 hours of paid volunteer time annually | | | of operations reviewed internally to support an environmental conscience approach | |
| Information provided as of 12/31/2022 | | | | |
To learn more about our Environmental, Social and Governance practices, please visit our dedicated webpage at: www.barharbor.bank/about-us/esg or scan the QR code provided. | | | |
| Notice of Shareholders | | | |
| | | WHEN: 10:00 a.m., EDT, Thursday, May 18, 2023 | | | | | WHERE: Bar Harbor Club 111 West Street Bar Harbor, Maine | | | | | RECORD DATE: March 15, 2023 | |
| This 2023 annual meeting of shareholders (the “Annual Meeting”) of Bar Harbor Bankshares (the “Company”) is being held for the following purposes: | |
| Item 1: To elect 12 persons to serve as directors for a term of one |
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Item 2: To hold a non-binding advisory |
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Item 3: To hold a non-binding advisory vote on the frequency of holding future non-binding advisory votes on the compensation of the |
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Item 4: To ratify the appointment of RSM US LLP as |
2023 | | |
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| The deadline for transmitting Internet, telephone, and email voting is 11:59 p.m. EDT on May 17, 2023 for shares held directly and by 11:59 p.m. EDT on May 15, 2023 for shares held in the Company’s 401(k) Plan. Please have your proxy card in hand when utilizing these alternate forms of voting. | |
| PROXY SUMMARY | |
| Record Date | | | Close of business on March 15, 2023 | |
| Voting | | | Shareholders as of the record date will be entitled to one vote at the Annual Meeting for each outstanding share of common stock | |
| Common stock outstanding as of record date: | | | 15,124,451 shares | |
| When the Annual Meeting Will be held: | | | 10:00 a.m., EDT, Thursday, May 18, 2023 | |
| Where the Annual Meeting Will be held: | | | Bar Harbor Club, 111 West Street, Bar Harbor, Maine | |
| | | | | | | | | By Mail Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. | | ||||
| By Internet www.proxyvote.com | | | By Telephone 1 833 814 9457 | | | In Person Bar Harbor Club 111 West Street Bar Harbor, Maine | | | By Email bhb@allianceadvisors.com | |
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| Proposal | | | Board | | | | | | Page | | | | |
| Item 1 Election of 12 Directors | | | FOR EACH NOMINEE | | | | | | 17 | | | | |
| Item 2 Non-binding advisory vote on the compensation of our named executive officers (“Say-on-Pay”) | | | FOR | | | | | | 53 | | | | |
| Item 3 Non-binding advisory vote on the frequency of holding future non-binding advisory votes on compensation of our named executive officers (“Say-on-Frequency”) | | | EVERY YEAR | | | | | | 54 | | | | |
| Item 4 Ratification of the appointment of RSM US LLP as our independent registered public accounting firm for the year ending December 31, 2023 | | | FOR | | | | | | 55 | | | | |
| Environmental, Social and Governance | |
| | Bar Harbor Bank & Trust is a true community Bank. We recognize, appreciate, and support the unique people and culture in the places we call home. | | |
| Corporate Governance | |
| Executive Key Responsibilities | | | | Audit Key Responsibilities | |
| • Exercises all the powers of the Board relating to the ordinary operations of business when the Board is not in session, subject to any specific vote of the Board • Committee members appointed by the Board after the Annual Meeting of Shareholders Members: Daina Belair, Matthew Caras, David Colter, Brendan O’Halloran, Curtis Simard, Kenneth Smith and David Woodside (Chair) 2022 Meetings: 0 | | | | • Oversees qualifications, appointment, performance, compensation, and independence of our independent registered public accounting firm • Assists the Board in fulfilling its oversight responsibilities with respect to (1) the financial information to be provided to shareholders and the Securities and Exchange Commission (the “SEC”); (2) the review of quarterly financial statements; (3) the system of financial reporting controls management as established; and (4) the internal audit, external audit, and loan review processes • Oversees compliance with all legal and regulatory requirements • Makes inquiries of management to assess the scope and resources necessary for the corporate audit function to execute its responsibilities | |
| | | | | Independence/Qualifications • All committee members are independent under the NYSE American listing requirements and Rule 10A-3(b)(1) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) • All committee members are financially literate in accordance with the NYSE American listing standards • All committee members are qualified as Audit Committee financial experts under SEC rules Members: Daina Belair, Steven Dimick, Debra Miller, Scott Toothaker and David Colter (Chair) 2022 Meetings: 4 See Appendix A for the Report of the Audit Committee. | |
| Compensation and Human Resources Key Responsibilities • Oversees establishing, maintaining, and administering all compensation programs and employee benefit plans • Approves and recommends the CEO’s compensation to the Board for further approval by all independent directors, and reviews and approves all other executive officer compensation • Recommends director compensation for Board approval • Reviews and approves the terms of any employment agreements, severance agreements, change in control protections and any other compensatory arrangements for the CEO, officers and other senior management • Reviews human capital management practices • Prepares and reviews its report on executive compensation to be included in our proxy statement or Annual Report on Form 10-K Independence/Qualifications • All committee members are independent under the NYSE American listing standards and the rules and regulations of the SEC Members: Matthew Caras, David Colter, Kenneth Smith, David Woodside and Brendan O’Halloran (Chair) 2022 Meetings: 5 Further information regarding the Compensation and Human Resources Committee can be found in this proxy statement beginning under the caption “Role of the Compensation and Human Resources Committee” on page 34. | | | | Governance Key Responsibilities • Oversees the Board’s governance processes • Screens director candidates, recommending nominees to the full Board (including the slate of returning directors) to be elected each year • Identifies and reviews the qualifications of potential Board members; recommends nominees for election to the Board • Recommends the size and composition of the Board • Recommends committee structure and membership • Sponsors new director orientation and education • Reviews and assesses shareholder input and our shareholder engagement process; provides shareholder feedback to the full Board • Oversight for all ESG-related matters Independence/Qualifications • All committee members are independent under the NYSE American listing standards Members: Daina Belair, Steven Dimick, Martha Dudman, Lauri Fernald, Brendan O’Halloran and Matthew Caras (Chair) 2022 Meetings: 3 | |
| Board Risk Key Responsibilities • Oversees risk governance structure • Reviews risk management, risk assessment guidelines, policies regarding market, credit, operational, liquidity, funding, reputational, compliance • Reviews enterprise risk, as well as other risks as necessary to fulfill the Committee’s oversight duties and responsibilities • Approval mechanism for all loan relationships >$5MM Independence/Qualifications • All committee members (besides Curtis Simard) are independent under the NYSE American listing standards | | | | • Reviews risk appetite and tolerance • Oversees capital, liquidity, and funding in coordination with the Asset/Liability Management Committee of our subsidiary, Bar Harbor Bank & Trust which we refer to as the Bank or BHBT Members: Matthew Caras, David Colter, Lauri Fernald, Debra Miller, Curtis Simard, Scott Toothaker, David Woodside and Kenneth Smith (Chair) 2022 Meetings: 12 Further information regarding the BRC can be found in this proxy statement beginning under the caption “Board Risk Committee” on page 5. | |
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| Principle 1: Boards are accountable to shareholders | | | | • All Directors are elected annually • We have proxy access with market terms • We have robust corporate governance disclosures • We have responded to all shareholder proposals that received majority support | |
| Principle 2: Shareholders should be entitled to voting rights in line with their economic interest | | | | • Each shareholder gets one vote per share on all matters | |
| Principle 3: Boards should be responsive to shareholders and be proactive in order to understand their perspectives | | | | • We have a robust shareholder engagement program to discuss our business, corporate governance, executive compensation, and sustainability practices • Our Board considers the feedback received from shareholder engagement when structuring governance, compensation, and sustainability practices | |
| Principle 4: Boards should have a strong independent leadership structure | | | | • The Chair of the Board is an independent, non-executive Director with a robust oversight role that has clearly defined duties that are disclosed to shareholders • Each Committee of the Board is chaired by an independent Director • The Board leadership structure is considered at least annually | |
| Principle 5: Boards should adopt structures and practices that enhance their effectiveness | | | | • Excluding our CEO, 100% of our Board is independent • The Board regularly reviews Director skills with a commitment to Director refreshment to ensure the Board meets the Company’s evolving oversight need • Each Committee of the Board has an extensive detailed charter outlining the Committee’s duties and responsibilities • Board members have complete access to Company officers and counsel and may retain outside counsel, financial or other advisors as the Board deems appropriate | |
| Principle 6: Boards should develop management incentive structures that are aligned with the long-term strategy of the company | | | | • The Compensation and Human Resources Committee annually reviews and approves incentive compensation program design, goals and objectives for alignment with compensation and business strategies | |
| Governance Procedures and Related Matters | |
| Beneficial Ownership of Common Stock | |
| NAME OF BENEFICIAL OWNERS | | | | TITLE OF CLASS | | | | AMOUNT OF BENEFICIAL OWNERSHIP | | | | FOOTNOTES | | | | PERCENT OF CLASS1 | | ||||||||||||
| 5% or more beneficial owners | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| BlackRock, Inc. | | | | | | Common | | | | | | | 1,185,927 | | | | | | | 2 | | | | | | | 7.90% | | |
| FMR LLC | | | | | | Common | | | | | | | 1,354,399 | | | | | | | 3 | | | | | | | 8.99% | | |
| DIRECTORS & DIRECTOR NOMINEES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Belair, Daina H. | | | | | | Common | | | | | | | 9,479 | | | | | | | 4 | | | | | | | * | | |
| Caras, Matthew L. | | | | | | Common | | | | | | | 16,235 | | | | | | | | | | | | | | * | | |
| Colter, David M. | | | | | | Common | | | | | | | 8,070 | | | | | | | | | | | | | | * | | |
| Dimick, Steven H. | | | | | | Common | | | | | | | 10,509 | | | | | | | | | | | | | | * | | |
| Dudman, Martha T. | | | | | | Common | | | | | | | 19,017 | | | | | | | | | | | | | | * | | |
| Fernald, Lauri E. | | | | | | Common | | | | | | | 14,651 | | | | | | | | | | | | | | * | | |
| Miller, Debra B. | | | | | | Common | | | | | | | 1,313 | | | | | | | | | | | | | | * | | |
| O’Halloran, Brendan J. | | | | | | Common | | | | | | | 11,122 | | | | | | | | | | | | | | * | | |
| Shaw, Brian D. | | | | | | Common | | | | | | | 270 | | | | | | | | | | | | | | * | | |
| Simard, Curtis C. | | | | | | Common | | | | | | | 97,210 | | | | | | | | | | | | | | * | | |
| Smith, Kenneth E. | | | | | | Common | | | | | | | 21,316 | | | | | | | 5 | | | | | | | * | | |
| Toothaker, Scott G. | | | | | | Common | | | | | | | 39,028 | | | | | | | 6 | | | | | | | * | | |
| Woodside, David B. | | | | | | Common | | | | | | | 20,190 | | | | | | | 7 | | | | | | | * | | |
| NAMED EXECUTIVE OFFICERS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Iannelli, Josephine | | | | | | Common | | | | | | | 32,678 | | | | | | | 8 | | | | | | | * | | |
| Colombo, Marion | | | | | | Common | | | | | | | 18,290 | | | | | | | 8 | | | | | | | * | | |
| Mercier, John M. | | | | | | Common | | | | | | | 18,147 | | | | | | | 8 | | | | | | | * | | |
| Edgar, Jason P. | | | | | | Common | | | | | | | 13,858 | | | | | | | 8 | | | | | | | * | | |
| All directors and executive officers as a group (16 persons) | | | | | | | | | | | | | 351,383 | | | | | | | 9 | | | | | | | 2.32% | | |
| 1. Unless otherwise indicated, an individual has sole voting power and sole investment power with respect to the indicated shares. All individual holdings amounting to less than 1% of issued and outstanding common stock are marked with an (*). | |
| 2. BlackRock, Inc, holdings are disclosed based on their ownership as of December 31, 2022 as filed on Form Schedule 13G on February 3, 2023. The address of BlackRock, Inc. is 55 East 52nd Street, New York, NY 10055. | |
| 3. FMR LLC holdings are disclosed based on their ownership as of December 31, 2022 as filed on Form Schedule 13G on February 9, 2023. The address of FMR LLC is 245 Summer Street, Boston, MA 02210. | |
| 4. Includes 1,670 shares owned by Ms. Belair’s spouse. | |
| 5. Includes 4,138 shares over which voting and dispositive powers are shared jointly with Mr. Smith’s spouse. | |
| 6. Includes 4,500 shares over which voting and dispositive powers are shared with Mr. Toothaker’s spouse. | |
| 7. Includes 5,628 shares over which voting and dispositive powers are shared jointly with Mr. Woodside’s spouse. This also includes 1,500 shares owned by Mr. Woodside’s spouse over which he does not have voting or dispositive powers. | |
| 8. The table below includes (a) shares the NEOs own directly, (b) shares over which NEOs have voting power of fully vested shares under our 401(k) Plan, (c) time-vested and performance shares (disclosed at Target) scheduled to be issued to the executives within 60 days of the March 15, 2023 record date under the long-term incentive plans. These ownership positions are set forth in the table below: | |
| 9. Total beneficial ownership excludes 1,000 (.0001%) shares of common stock as of the March 15, 2023 record date held by one trust, which, for the purpose of voting, are allocated equally among the directors present at the Annual Meeting under the terms of the respective trust instruments. No director has any other beneficial interest in these shares. This trust is denominated for purposes of this proxy statement as the “Parker Trust.” The Parker Trust was established in 1955 in perpetuity. Bar Harbor Wealth Management (“BHWM”), our second tier non-depository trust services company located in Ellsworth, Maine, is the sole Trustee, with full powers, of this trust benefiting the Mt. Heights Cemetery in Southwest Harbor, Maine. | |
| NAME | | | | DIRECT (a) | | | | 401(k) PLAN (b) | | | | LONG TERM INCENTIVE EQUITY (c) | | |||||||||
| Simard, Curtis C. | | | | | | 78,168 | | | | | | | 1,451 | | | | | | | 17,591 | | |
| Iannelli, Josephine | | | | | | 25,665 | | | | | | | — | | | | | | | 7,013 | | |
| Colombo, Marion | | | | | | 13,761 | | | | | | | — | | | | | | | 4,529 | | |
| Mercier, John M. | | | | | | 13,618 | | | | | | | — | | | | | | | 4,529 | | |
| Edgar, Jason P. | | | | | | 9,476 | | | | | | | — | | | | | | | 4,382 | | |
| Proposal 1 Election of Directors | |
| NAME | | | | AGE | | | | YEAR FIRST ELECTED OR APPOINTED DIRECTOR | | | | POSITION(S) WITH OUR COMPANY | | | | POSITION(S) WITH OUR SUBSIDIARIES | | ||||||
| Daina H. Belair | | | | | | 67 | | | | | | | 2015 | | | | | Director | | | | Director, BHBT since 2015 Director, BHWM since 2022 | |
| Matthew L. Caras | | | | | | 66 | | | | | | | 2014 | | | | | Director | | | | Director, BHBT since 2014 | |
| David M. Colter | | | | | | 55 | | | | | | | 2016 | | | | | Director | | | | Director, BHBT since 2016 | |
| Martha T. Dudman | | | | | | 71 | | | | | | | 2003 | | | | | Director | | | | Director, BHBT since 2003 Director, BHWM since 2022 | |
| Lauri E. Fernald | | | | | | 61 | | | | | | | 2005 | | | | | Director | | | | Director, BHBT since 2005 | |
| Debra B. Miller | | | | | | 65 | | | | | | | 2022 | | | | | Director | | | | Director, BHBT since 2022 Director, BHWM since 2022 | |
| Brendan J. O’Halloran | | | | | | 60 | | | | | | | 2018 | | | | | Director | | | | Director, BHBT since 2018 Director, BHWM since 2022 | |
| Brian D. Shaw | | | | | | 54 | | | | | | | Nominee | | | | | Nominee | | | | None | |
| Curtis C. Simard | | | | | | 52 | | | | | | | 2013 | | | | | Director, President and CEO | | | | President and CEO of BHBT since 2013 Director, BHBT since 2013 Director, BHWM since 2022 | |
| Kenneth E. Smith | | | | | | 69 | | | | | | | 2004 | | | | | Director | | | | Director, BHBT since 2004 | |
| Scott G. Toothaker | | | | | | 60 | | | | | | | 2003 | | | | | Director | | | | Director, BHBT since 2003 | |
| David B. Woodside | | | | | | 71 | | | | | | | 2003 | | | | | Director | | | | Director, BHBT since 2003 Chairman of the Board since 2016 | |
| NUMBER OF BOARD AND COMMITTEE MEETINGS HELD IN 2022 | | |||||||||||||||||||||||||||||||||||
| BOARD | | | | EXECUTIVE | | | | AUDIT | | | | COMPENSATION & HUMAN RESOURCES | | | | GOVERNANCE | | | | BOARD RISK | | |||||||||||||||
| 10 | | | | | | 0 | | | | | | | 4 | | | | | | | 5 | | | | | | | 3 | | | | | | | 12 | | |
| Note: In addition to the number of formal meetings reflected above, from time to time our Board and/or its committees also held educational and/or informational sessions related to emerging topics and best practices. | |
| OUR BOARD UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE “FOR” THE ELECTION OF EACH OF THE 12 DIRECTOR NOMINEES. | |
| Director Nominees | |
| | | Daina H. Belair | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Age: 67 | Director Since: 2015 | Independent | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Mrs. Belair is a retired attorney and a member of the New York and District of Columbia Bar Associations. In 2008, she relocated to Maine where she owned and operated the Inn at Sunrise Point until mid-2021. During her more than 25 years as a practicing attorney, she specialized in banking and financial services. In 2002-2006 she served as General Counsel and Managing Director of U.S. Trust Corporation and its subsidiary banks, U.S. Trust Company of New York and U.S. Trust Company N.A. Prior to that, she was employed by Citibank N.A. for 15 years, as a Vice President and Managing Director, and holding various senior division general counsel and compliance officer positions for Citibank’s international corporate and institutional business as well as general counsel for the Citibank Private Bank. Earlier in her career she practiced law in Washington D.C. At this time, she primarily resides in South Carolina but maintains family and business ties to Maine and New England. | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Professional and Leadership Highlights: • Significant banking, wealth management and regulatory experience • Served as a Director of various private not-for-profit organizations, including Home Counselors Inc. in Maine and Women in Housing and Finance in Washington DC • Served as Director and Treasurer of the Penobscot Bay Chamber of Commerce and as President of the Lincolnville Business Group • Served on the Town of Lincolnville Budget Committee | | | | Committee Memberships: • Audit Committee • Executive Committee • Governance Committee • Bar Harbor Committee (Chair)
| Mrs. | | |
| | | Matthew L. Caras, | | |||||||||||||||||||||||
| Age: 66 | Director Since: 2014 | Independent | | |||||||||||||||||||||||||
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| An attorney and member of the Maine Bar, Mr. Caras is a founder and principal of Leaders LLC, a mergers and acquisitions advisory services firm representing public, private, and throughout the United States and globally. Mr. Caras | | |||||||||||||||||||||||||
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| Professional and Leadership Highlights: • Serves on the Arrowsic, Maine Planning Board • Former partner, department chair, and member of the executive committee of Verrill Dana LLP, a full-service law firm with over 130 attorneys and offices in Portland, | | | | Committee Memberships: • Executive Committee • Compensation And Human Resources Committee • Board Risk Committee • Governance Committee (Chair) | | |||||||||||||||||||||
| Mr. | |
| | | David M. | | |||||||||||||||||||||||
| Age: 55 | Director Since: 2016 | Independent | | |||||||||||||||||||||||||
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| Mr. Colter | | |||||||||||||||||||||||||
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| Professional and • Board member, Maine State Chamber of Commerce • Executive Committee and Audit Committee member • Board member, Maine International Trade Center • Holds Certified Public Accountant and • Former member of the Board, Executive Committee and Treasurer for the Ronald McDonald House, NW Ohio • Former District Chairman, Waldo District, Boy Scouts of America | | | | Committee Memberships: • Board Risk Committee • Compensation And Human Resources Committee • Executive Committee • Audit Committee (Chair) | | |||||||||||||||||||||
| Mr. Colter’s experience as the principal executive officer of a manufacturing company, | |
| | | Martha T. Dudman | | |||||||||||||||||||||||
| Age: 71 | Director Since: 2003 | Independent | | |||||||||||||||||||||||||
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| Ms. Dudman, a retired business executive and consultant, is a Director of the | | |||||||||||||||||||||||||
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| Professional and Leadership Highlights: • Former Corporate President, with experience extending to • Vice President of the • Past President of • Member of the Board of Selectmen for the Town of Mount Desert • Served on numerous nonprofit boards; awarded membership in the Deborah Morton Society, recognizing women of high distinction in their careers and public service and whose leadership in civic, cultural, and social causes has been | | | | Committee Memberships: • Governance Committee • Bar Harbor | | |||||||||||||||||||||
| Ms. Dudman’s extensive experience in business management, public relations, marketing and sales provide | |
| | | Lauri E. | | |||||||||||||||||||||||
| Age: 61 | Director Since: 2005 | Independent | | |||||||||||||||||||||||||
| | | | | | | | | | | | | |||||||||||||||
| Ms. Fernald is an owner in Jordan Fernald Funeral Home headquartered in Mount Desert, Maine, and she is a Certified Funeral Service Practitioner. Ms. Fernald resides in Mount Desert, Maine. | | |||||||||||||||||||||||||
| | | |||||||||||||||||||||||||
| Professional and • Serves on the finance committee of Hospice Volunteers of Hancock County • Altar Guild Member, Parish of St. Mary and St. Jude Episcopal Church of Northeast Harbor and Seal Harbor • Member for the Maine Coast Memorial Hospital Foundation • Current member of numerous foundations and associations including the Woodbine Cemetery Association of Ellsworth, and the Treasurer and Sexant Brookside Cemetery Corp. of Mount Desert | | | | Committee Memberships: • Governance Committee • Board Risk Committee | | |||||||||||||||||||||
| Ms. Fernald’s commercial and community service experience brings a depth of knowledge and perspective to the Board | |
| | | Debra B. Miller | | |||||||||||||||||||||||
| Age: 65 | Director Since: 2022 | Independent | | |||||||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||||
| Mrs. Miller has served as the Vice President of External Relations at the NH Community Loan Fund since 2013. She oversees the organization’s philanthropy, marketing and communications as well as their public policy efforts. She previously served as Senior Vice President and Director of Corporate Affairs in | | |||||||||||||||||||||||||
| | | |||||||||||||||||||||||||
| Professional and Leadership Highlights: • • Previously served as the Chair of • Previously appointed by New Hampshire Governor Jeanne Shaheen to serve as a • Among other awards, recognized as one of New Hampshire’s Remarkable Women by New Hampshire Magazine, received the Susan B. Anthony Award from the Manchester YWCA, and received the Leading Women Award from the Girl Scouts Patriots’ Trail Council | | | | Committee Memberships: • Audit Committee • Board Risk Committee • Bar Harbor Wealth Management Committee | | |||||||||||||||||||||
| Mrs. Miller’s significant experience in banking and compliance combined with her community service experience provides a valuable combination of proven skills and insights to the | |
| | | Brendan J. O’Halloran | | ||||||||||||||||||||||||||
| Age: 60 | Director Since: 2018 | Independent | | ||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | ||||||||||||
| Mr. O’Halloran began his career at The First Boston Corporation in New York City and was employed by Toronto Dominion Bank Financial Group in varying capacities since 1989. Prior to his retirement in 2015, his most recent position was | | ||||||||||||||||||||||||||||
| | | ||||||||||||||||||||||||||||
| Professional and Leadership Highlights: • Holds an AB from Princeton University and an MBA from the Harvard Graduate School of Business Administration • Substantial banking experience including oversight of broad geography and multiple business lines. Demonstrated leadership skills that include strong integration and strategic expansion experience across various credit and capital market cycles • Serves as a member of the Board of Directors of Cigent Technology, Inc., Fort Meyers, Florida • Served as a trustee for the Institute of International Bankers | | | | Committee Memberships: • Bar Harbor Wealth Management Committee • Executive Committee • Governance Committee • Compensation Committee (Chair) | | ||||||||||||||||||||||||
| Mr. O’Halloran’s extensive experience in the financial services industry and | |
| | | Brian D. Shaw | | |||||||||||||||||||||||
| Age: 54 | Director Nominee | Independent | | |||||||||||||||||||||||||
| | | | | | | | | | | | | |||||||||||||||
| Mr. Shaw owns a real estate contracting and | | |||||||||||||||||||||||||
| | | |||||||||||||||||||||||||
| Professional and Leadership Highlights: • Graduate of Eastern Maine Technical College with degrees in construction design and architecture • Experience in navigating various economic and real estate cycles • Past member of the Board | | | | Committee Memberships: • Director Nominee | | |||||||||||||||||||||
| Mr. Shaw’s executive leadership and commercial service experience | |
| | | Curtis C. Simard | | |||||||||||||||||||||||||||
| Age: 52 | Director Since: 2013 | | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||||
| Mr. Simard | | |||||||||||||||||||||||||||||
| | | |||||||||||||||||||||||||||||
| Professional and Leadership Highlights: • Serves as a • Serves as a member of the • Serves as a member of the Board of Directors at the Business and Industry Association of N.H. • Past Chair of Maine Bankers Association • Previous Board member of Northern Light Maine Coast Memorial | | | | Committee • Executive Committee • Bar Harbor Wealth Management Committee • Board Risk Committee | | |||||||||||||||||||||||||
| Mr. Simard’s position as our President and CEO, his extensive track record of success in banking throughout the | |
| | | Kenneth E. | | |||||||||||||||||||||||
| Age: 69 | Director Since: 2004 | Independent | | |||||||||||||||||||||||||
| | | | | | | | | | | | | |||||||||||||||
| Mr. Smith | | |||||||||||||||||||||||||
| | | |||||||||||||||||||||||||
| Professional and Leadership Highlights: • 40 years plus of experience and expertise • Serves as a Commissioner of the • Member of the Town’s Cruise Ship Committee • Member of Anah Shrine • Member of Acadia National Park Advisory Committee • Vice Chair of the Bar Harbor Housing Authority • Former Chairman and long-time member of the Bar Harbor Town • Past President and current member | | | | Committee Memberships: • Executive Committee • Compensation And Human Resources Committee • Board Risk Committee (Chair) | | |||||||||||||||||||||
| Mr. Smith’s expertise in the hospitality industry is | |
| | | Scott G. Toothaker | | |||||||||||||||||||||||
| Age: 60 | Director Since: 2003 | Independent | | |||||||||||||||||||||||||
| | | | | | | | | | | | | | | |||||||||||||
| Mr. | | |||||||||||||||||||||||||
| | | |||||||||||||||||||||||||
| Professional and • Holds an MBA from the University of Maine and • Experience in navigating financial management and transition across many industries and through various economic cycles | | | | Committee Memberships: • Audit Committee • Board Risk Committee | | |||||||||||||||||||||
| As a practicing CPA, | |
| | | David B. | | |||||||||||||||||||||||
| Age: 71 | Director Since: 2003 | Independent | | |||||||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||||
| Mr. Woodside | | |||||||||||||||||||||||||
| | | |||||||||||||||||||||||||
| Professional and Leadership Highlights: • Received a BS • Served as Vice Chair of the • Past member of the Bar Harbor Town Council • Past President of the Bar Harbor Rotary Club and Bar Harbor Chamber of | | | | Committee Memberships: • Chairman Of The Board Of Directors • Executive Committee (Chair) • Compensation And Human Resources Committee • Board Risk Committee | | |||||||||||||||||||||
| Mr. Woodside’s in | |
| | | | BELAIR | | | CARAS | | | COLTER | | | DUDMAN | | | FERNALD | | | MILLER | | | O’HALLORAN | | | SHAW | | | SIMARD | | | SMITH | | | TOOTHAKER | | | WOODSIDE | | | TOTAL | | |||
| SKILLS AND EXPERIENCE | | ||||||||||||||||||||||||||||||||||||||||||
| | | Executive Leadership | | | ● | | | ● | | | ● | | | ● | | | ● | | | | | | ● | | | ● | | | ● | | | | | | ● | | | ● | | | 10 | | |
| | | Financial Services Industry | | | ● | | | | | | ● | | | | | | | | | ● | | | ● | | | | | | ● | | | ● | | | | | | | | | 6 | | |
| | | Financial Reporting/ Audit/ Capital Planning | | | ● | | | ● | | | ● | | | ● | | | ● | | | | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | 11 | | |
| | | Risk Management | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | 12 | | |
| | | Financial Services Compliance/ Legal/ Regulatory | | | ● | | | | | | ● | | | | | | | | | ● | | | ● | | | | | | ● | | | | | | | | | | | | 5 | | |
| | | Technology/ Information Security/ Cybersecurity | | | | | | | | | ● | | | | | | | | | | | | ● | | | | | | ● | | | | | | ● | | | ● | | | 5 | | |
| Mergers & Acquisitions | | | ● | | | ● | | | | | | | | | | | | | | | ● | | | | | | ● | | | | | | ● | | | | | | 5 | | |||
| | | Human Capital Management | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | 12 | | |
| | | Public Company Experience | | | ● | | | | | | ● | | | | | | | | | ● | | | ● | | | | | | ● | | | | | | | | | | | | 5 | | |
| BOARD INDEPENDENCE AND TENURE | | ||||||||||||||||||||||||||||||||||||||||||
| Independent | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | ● | | | | | | ● | | | ● | | | ● | | | 11 | | |||
| Board Tenure (years) | | | 7 | | | 8 | | | 6 | | | 19 | | | 17 | | | 1 | | | 4 | | | N/A | | | 9 | | | 18 | | | 19 | | | 19 | | | — | | |||
| BOARD DEMOGRAPHICS | | ||||||||||||||||||||||||||||||||||||||||||
| Age | | | 67 | | | 66 | | | 55 | | | 71 | | | 61 | | | 65 | | | 60 | | | 54 | | | 52 | | | 69 | | | 60 | | | 71 | | | — | | |||
| Gender | | | F | | | M | | | M | | | F | | | F | | | F | | | M | | | M | | | M | | | M | | | M | | | M | | | — | | |||
| Race | | | C | | | C | | | C | | | C | | | C | | | A | | | C | | | C | | | C | | | C | | | C | | | C | | | — | |
| Executive Officers | |
| NAME | | | | AGE | | | | SINCE | | | | CURRENT POSITION | | | | POSITIONS WITH SUBSIDIARIES | | ||||||
| Curtis C. Simard | | | | | | 52 | | | | | | | 2013 | | | | | Director, President and CEO | | | | President and CEO of BHBT since June 2013. Director of BHBT since June 2013. Director of BHWM since 2022 when the two trust entities merged | |
| Josephine Iannelli | | | | | | 50 | | | | | | | 2016 | | | | | Executive Vice President, Chief Financial Officer and Treasurer | | | | Executive Vice President, Chief Financial Officer, and Treasurer of BHBT since 2016. Chief Financial Officer and Treasurer of BHWM since 2022 when the two trust entities merged | |
| Marion Colombo | | | | | | 57 | | | | | | | 2018 | | | | | N/A | | | | Executive Vice President, Director of Retail Delivery of BHBT since 2018 | |
| John M. Mercier | | | | | | 59 | | | | | | | 2018 | | | | | N/A | | | | Executive Vice President, Chief Lending Officer of BHBT since 2018. Formerly Executive Vice President, Senior Lender NH and VT of BHBT since 2017 | |
| Jason Edgar | | | | | | 46 | | | | | | | 2019 | | | | | N/A | | | | Hired in 2019 as President of both BHTS and CTC; President of BHWM since 2022 when the two trust entities merged | |
| Alison DiPaola | | | | | | 35 | | | | | | | 2022 | | | | | N/A | | | | Senior Vice President, Chief Human Resources Officer of BHBT since April, 2022 | |
| Joseph Schmitt | | | | | | 50 | | | | | | | 2022 | | | | | N/A | | | | Senior Vice President, Chief Marketing Officer of BHBT since September 2017, and a Head of Communications since January, 2022 | |
| Joseph P. Scully | | | | | | 61 | | | | | | | 2021 | | | | | N/A | | | | Senior Vice President, Chief Information Officer and Director of Operations of BHBT since April, 2021 | |
| John M. Williams, II | | | | | | 32 | | | | | | | 2021 | | | | | N/A | | | | Senior Vice President, Chief Risk Officer of BHBT since April, 2021 | |
CURTIS C. SIMARD | | | | |
| | Mr. Simard has served as our President and Chief Executive Officer since August 10, 2013. Prior to joining the Bank, he served as Senior Vice President and Managing Director of Professional and Leadership Highlights: • Serves as a member of the Executive Committee of Maine Bankers Association • Serves as a member of the Board of Directors of Friends of Acadia and the Ellsworth Business Development Corporation • Serves as a member of the Board of Directors at the Business and Industry Association of N.H. • Past Chair of Maine Bankers Association • Previous Board member of Northern Light Maine Coast Memorial Hospital, Seal Cove Auto Museum and the Abbe Museum, a Smithsonian affiliate representing Native American Culture Mr. Simard’s position as our President and CEO, his extensive track record of success in banking throughout New England, and his leadership of our company provide him with considerable insight into our opportunities, challenges and operations. | |
JOSEPHINE IANNELLI | | | | |
| | Ms. Iannelli joined Professional and Leadership Highlights: • Holds a BS in Accounting from Baldwin Wallace University • Serves as a member of the Board of Directors, Secretary and Chair of the Audit Committee for the Maine Seacoast Mission • Serves as a member of the Board of Trustees and Chair of the Finance Committee for Camp Beech Cliff • Owned her own consulting company serving both national and international In these varying roles, Ms. Iannelli’s experience | |
MARION COLOMBO | | | | |
| | Ms. Colombo joined our company in February 2018 as Executive Vice President, Director of Retail Delivery. She is responsible for retail strategy and Professional and Leadership Highlights: • Prior to joining Bar Harbor Bank & Trust, Ms.Colombo served in multiple leadership roles at TD Bank for 30 years. She served as Market President of Retail for TD Bank in Boston, Massachusetts from 2009 to 2018 where she was responsible for the retail strategy for 110 de novo branches across Greater Boston and Rhode Island • Past recipient of the Abigail Adams award from the Massachusetts Women’s Political Caucus, recognizing her as an Outstanding Woman Leader • Served with the United Way, Boston Partners in Education, and other nonprofits having been recognized for extraordinary support of women in the workplace Ms. Colombo’s in-depth knowledge of retail banking and her strong leadership skills and experience provide significant expertise in this important segment of our business. | |
JOHN M. MERCIER | | | | |
| | Mr. Mercier has served as our Executive Vice President and Chief Lending Officer since October 1, 2018. He joined our company in April 2017 as Executive Vice President, Senior Loan Officer for New Hampshire and Vermont. His banking career spans more than 30 years with significant lending experience in many types of lending, across segments, and through various economic cycles. Prior roles have included various initiatives at Citizens Bank, KeyCorp, TD Bank, and Primary Bank. Mr. Mercier resides in Manchester, New Hampshire. Professional and Leadership Highlights: • Received a BS in Finance from Bentley College • Graduate of the New England School of Banking • Serves as a member of the Board of • Serves as Manchester, NH Police Commissioner • Past Chairman and Trustee Emeritus of Southern New Hampshire Health System • Past Chairman of the Manchester-Boston Regional Airport Authority • Past Trustee of various nonprofits including the Granite United Way, New Hampshire Institute of Art, and the In his role, Mr. Mercier’s experience provides for the effective planning, development and implementation of | |
JASON EDGAR | | | | |
| | Mr. Edgar joined our company in June 2019 as President of BHTS and CTC. BHTS and CTC merged into one entity as of May 1, 2022, Bar Harbor Wealth Management. He is responsible for Professional and Leadership Highlights: • Prior to joining Bar Harbor Bank & Trust, Mr. Edgar served in multiple leadership roles at Berkshire Hills Bancorp. He served as the Chief Investment Officer and Director of Wealth Management from 2016 to 2019. In his position at Berkshire Bank, he was responsible for overseeing the strategic direction and daily management of the business line. Prior to that role Mr. Edgar was the New England Regional Leader for Berkshire Hills Bancorp. Prior to Berkshire Hills Bancorp, Mr. Edgar was a Senior Officer overseeing the investment process at Enterprise Bank. • He received a BA Degree in Political Science from the University of Connecticut. Mr. Edgar’s strong wealth management experience, deep industry knowledge and significant leadership skills provide expertise in this important segment of our business. | |
ALISON DIPAOLA | | | | |
| | Ms. DiPaola has served as Professional and Leadership Highlights: • Received a BS in Business Administration from the University of New Hampshire and an MSHRM from Southern New Hampshire University • Maintains her Society for Human Resource Management, Senior Certified Professional credential (SHRM-SCP) • Graduate of the New England School of Financial Studies and Northern New England School of Banking • Serves as a Board Member of the Newport Cal Ripken Baseball League In her role, Ms. DiPaola’s Human Resources education, certifications, and experience throughout banking make her effective in managing our Human Resources function across all three states. | |
JOSEPH SCHMITT | | | | |
| | Mr. Schmitt has served as our Chief Professional and Leadership Highlights • Holds a BS in Finance and Marketing from Skidmore College • Earned an MBA from Suffolk University • Prior to joining the Bank, Mr. Schmitt held various marketing and product management roles over ten years at Santander Bank. He served as Mr. Schmitt’s experience across many business lines in banks of varying size is valuable in his role of Marketing, Product Deployment and Communication. | |
JOSEPH SCULLY | | | | |
| | Mr. Scully is the CIO and Director of Operations at Bar Harbor Bank & Professional and Leadership Highlights: • Past FS-ISAC Payments Risk • Past Trusteer Product Advisory Committee Member Mr. Scully holds an Associate’s degree of Applied Science from Edison State Community College in Ohio. Mr. Scully is a proud US Army veteran, having served in the Military Intelligence branch of the US Army. | |
| Certain Relationships and Transactions | |
| Compensation of Directors | |
| COMPENSATION | | | | 2021 AMOUNTS | | | | 2022 AMOUNTS | | ||||||
| Board Retainer | | | | | $ | 32,000 | | | | | | $ | 32,000 | | |
| Chair of the Board Retainer | | | | | | 22,500 | | | | | | | 22,500 | | |
| Audit Chair Retainer | | | | | | 10,000 | | | | | | | 10,000 | | |
| All Other Committee Chair Retainer | | | | | | 7,500 | | | | | | | 7,500 | | |
| Chair of BHWM | | | | | | 7,500 | | | | | | | 7,500 | | |
| Annual Fully Vested Restricted Stock Grant | | | | | | 32,500 | | | | | | | 40,000 | | |
| Per Meeting Fee | | | | | | — | | | | | | | — | | |
| NAME | | | | FEES EARNED OR PAID IN CASH1 | | | | RESTRICTED STOCK AWARDS2 | | | | TOTAL | | |||||||||
| Daina H. Belair | | | | | $ | 32,928 | | | | | | $ | 39,994 | | | | | | $ | 72,921 | | |
| Matthew L. Caras | | | | | | 39,500 | | | | | | | 39,994 | | | | | | | 79,494 | | |
| David M. Colter | | | | | | 38,237 | | | | | | | 39,994 | | | | | | | 78,231 | | |
| Steven H. Dimick | | | | | | 32,000 | | | | | | | 39,994 | | | | | | | 71,994 | | |
| Martha T. Dudman | | | | | | 34,843 | | | | | | | 39,994 | | | | | | | 74,837 | | |
| Lauri E. Fernald | | | | | | 34,843 | | | | | | | 39,994 | | | | | | | 74,837 | | |
| Debra B. Miller | | | | | | 19,956 | | | | | | | 39,994 | | | | | | | 59,950 | | |
| Brendan J. O’Halloran | | | | | | 36,677 | | | | | | | 39,994 | | | | | | | 76,671 | | |
| Kenneth E. Smith3 | | | | | | 39,500 | | | | | | | 39,994 | | | | | | | 79,494 | | |
| Stephen R. Theroux | | | | | | 12,128 | | | | | | | — | | | | | | | 12,128 | | |
| Scott C. Toothaker | | | | | | 35,790 | | | | | | | 39,994 | | | | | | | 75,784 | | |
| David B. Woodside | | | | | | 54,500 | | | | | | | 39,994 | | | | | | | 94,494 | | |
| Totals | | | | | $ | 410,901 | | | | | | $ | 439,934 | | | | | | $ | 850,835 | | |
| 1. Fees earned include all stipends earned in 2022. | |
| 2. Represents the value of 1,313 restricted shares earned in 2022 and granted in November 15, 2022 to each independent director as part of their compensation calculated at the closing price on the day of the grant. | |
| 3. Mr. Smith deferred a portion of his compensation under a Non-Qualified Deferred Compensation arrangement. This deferred arrangement is funded entirely by the director and the funds are invested and remain in our name until the director withdraws them upon his resignation, retirement, or termination from Board membership. Mr. Smith assumes the investment risk on these funds and holds the status of an unsecured creditor of our Company for the payment of these deferred fees at a future date. | |
| Compensation Discussion and Analysis | |
| 2019 | | | | 2020 | | | | 2021 | | | | 2022 | |
| 96.4% | | | | 93.8% | | | | 96.0% | | | | 96.3% | |
| Institution Name | | | | Ticker | |
| Arrow Financial Corporation | | | | AROW | |
| Bankwell Financial Group, Inc. | | | | BWFG | |
| Cambridge Bancorp | | | | CATC | |
| Camden National Corporation | | | | CAC | |
| Chemung Financial Corporation | | | | CHMG | |
| Citizens & Northern Corporation | | | | CZNC | |
| CNB Financial Corporation | | | | CCNE | |
| Enterprise Bancorp, Inc. | | | | EBTC | |
| Evans Bancorp, Inc. | | | | EVBN | |
| Financial Institutions, Inc. | | | | FISI | |
| Greene County Bancorp, Inc. | | | | GCBC | |
| Norwood Financial Corp | | | | NWFL | |
| Peoples Financial Services Corp. | | | | PFIS | |
| The First Bancorp, Inc. | | | | FNLC | |
| Tompkins Financial Corporation | | | | TMP | |
| TrustCo Bank Corp NY | | | | TRST | |
| Washington Trust Bancorp, Inc. | | | | WASH | |
| Western New England Bancorp, Inc. | | | | WNEB | |
| PERFORMANCE YEAR 2022 COMPENSATION COMPONENTS | | |||
| DESCRIPTION | | | HOW IT PAYS | |
| Base Salary | | | Salary/wages are paid on a standard, Company-wide schedule of 26 pay periods throughout the year | |
| Annual Cash Incentive | | | Awarded annually, subject to Board-approved formulas for Company-wide, and group-specific performance measures. | |
| Equity Incentives | | | Comprised of three-year performance based Restricted Stock Units- and time-based Restricted Stock Awards. All subject to holding requirements in accordance with our stock ownership guidelines. | |
| Executive Benefits | | | Executive benefits include reimbursement of membership fees to fitness, country club, or similar organizations, an automobile allowance, 401(k) matching contributions under our 401(k) plan and the value of employer provided life insurance that exceeds the IRS limit. | |
| NAME | | | | 2022 BASE SALARY | | | | 2023 BASE SALARY | | ||||||
| Curtis C. Simard | | | | | $ | 694,900 | | | | | | $ | 716,000 | | |
| Josephine Iannelli | | | | | | 445,600 | | | | | | | 459,000 | | |
| Marion Colombo | | | | | | 328,900 | | | | | | | 339,000 | | |
| John M. Mercier | | | | | | 328,900 | | | | | | | 339,000 | | |
| Jason Edgar | | | | | | 318,300 | | | | | | | 328,000 | | |
| NAME | | | | BASE SALARY | | | | Target (AS A PERCENTAGE OF BASE SALARY) | | | | TARGET | | |||||||||
| Curtis C. Simard | | | | | $ | 694,900 | | | | | | | 50.00% | | | | | | $ | 347,450 | | |
| Josephine Iannelli | | | | | | 445,600 | | | | | | | 35.00 | | | | | | | 155,960 | | |
| Marion Colombo | | | | | | 328,900 | | | | | | | 30.00 | | | | | | | 98,670 | | |
| John M. Mercier | | | | | | 328,900 | | | | | | | 30.00 | | | | | | | 98,670 | | |
| Jason Edgar | | | | | | 318,300 | | | | | | | 30.00 | | | | | | | 95,490 | | |
| PERFORMANCE GOALS | | |||||||||||||||||||||||||||||||||||
| INCENTIVE MEASURES | | | | THRESHOLD | | | | TARGET | | | | STRETCH | | | | ACTUAL | | | | WEIGHTS | | |||||||||||||||
| Adjusted Net Income ($thousands)1 | | | | | $ | 31,629 | | | | | | $ | 34,010 | | | | | | $ | 37,411 | | | | | | $ | 44,080 | | | | | | | 40.00% | | |
| NPL/Tloans2 | | | | | | 0.53% | | | | | | | 0.40% | | | | | | | 0.33% | | | | | | | 0.23% | | | | | | | 10.00 | | |
| Efficiency Ratio3 | | | | | | 66.74% | | | | | | | 65.43% | | | | | | | 64.12% | | | | | | | 64.00% | | | | | | | 10.00 | | |
| Strategic Initiatives4 | | | | | | 90.00% | | | | | | | 100.00% | | | | | | | 110.00% | | | | | | | 110.00% | | | | | | | 40.00 | | |
| NAMED EXECUTIVE OFFICER | | | | ACTUAL | | | | TARGET | | | | % OF TARGET | | |||||||||
| Curtis C. Simard | | | | | $ | 521,175 | | | | | | $ | 347,450 | | | | | | | 150% | | |
| Josephine Iannelli | | | | | | 233,940 | | | | | | | 155,960 | | | | | | | 150% | | |
| Marion Colombo | | | | | | 148,005 | | | | | | | 98,670 | | | | | | | 150% | | |
| John M. Mercier | | | | | | 148,005 | | | | | | | 98,670 | | | | | | | 150% | | |
| Jason Edgar | | | | | | 143,235 | | | | | | | 95,490 | | | | | | | 150% | | |
| Participants | | | | Total LTI Target (% of | | |||
| CEO/President | | | | | | 65% | | |
| EVP/CFO | | | | | | 40% | | |
| All other | | | | | | 35% | | |
creation. In addition, compensating executives in equity-based compensation aligns executives with long-term shareholder interests. See the table “Grants of Plan Based Awards” on page 45 to reference the actual shares that may be earned under the 2022-2024 Plan for each NEO. The following table shows the long-term incentive awards granted in 2022:
Information pertaining to outstanding equity awards are disclosed in the “Outstanding Equity Awards at Fiscal Year-End” table found on page 43 in this proxy statement. LONG-TERM EQUITY INCENTIVE MEASURES Relative Adjusted Return on Assets (“Adjusted ROA”) and Relative Adjusted Return on Equity (“Adjusted ROE”) were selected as the primary performance measures for awards granted subject to performance-based vesting conditions since these measures reflect our growth strategy and our strategic plan. We will measure our performance against a Custom Industry Index for the 2022-2024 performance period. The Custom Industry Index is objectively determined and includes exchange-traded banks and thrifts with assets between $1.9 billion and $10 billion and headquartered in the Northeast and Mid-Atlantic, excluding New York City. If any banks on the Custom Industry Index are de-registered or acquired as of the end of the performance period, they will be removed for the entire performance period and will not be replaced. The average of the 12 quarters within the performance period is calculated for Bar Harbor and the component companies of the Index. Then, the percent rank are calculated to measure the relative performance achievement. The table below shows the performance metric.
Benefits, Retirement and Post-Termination Compensation Elements We provide a 401(k) plan for all employees meeting minimum age (18 years old) requirements which includes employer matching contributions of up to 5%. We match 100% on the first 3% deferred by employees and 50% on the next 2% deferred by employees. We also maintain employment agreements with Mr. Simard and Ms. Iannelli which provide severance benefits in the event of a termination by the employer without cause and/or by the employee with good reason, as well as change in control with subsequent termination (or constructive termination). We also have change in control agreements with Ms. Colombo and Messrs. Mercier and Edgar. These agreements provide for, 2023 PROXY STATEMENT Page 39 COMPENSATION DISCUSSION & ANALYSIS among other things, the payment of 24 months of their salary and subsidized medical COBRA reimbursements for a period of 12 months in the event of both a change in control and subsequent termination (or constructive termination) within one year after a change in control, unless such termination was for cause. These specific payments and timeframes were selected based on the advice of a compensation consultant and employment attorney as representative of similar type agreements in the industry, and which we believe are necessary to attract and retain senior executives. Our equity award agreements and the related LTI documents address the treatment of equity awards upon a termination of employment or change in control. Under these provisions, awards vest on a prorated basis in case of termination of employment due to death, disability, or retirement (defined as attainment of age 65 or attainment of age 60 with at least 10 years of service), based on actual performance for performance-based awards. The award agreements and program documents also provide for full vesting of outstanding equity awards upon the occurrence of a change in control (i.e., without requirement of a subsequent termination of employment if awards are not assumed, converted or replaced), based on target performance in case of performance-based awards. If awards are assumed, converted or replaced and separation from service occurred within one-year from change in control, time-vesting awards will be fully vested and performance vesting awards will be fully vested based on the higher of target or actual performance as of the Company’s fiscal quarter end preceding the change in control. The Compensation and Human Resources Committee feels these agreements are necessary to provide a competitive total compensation plan to attract and retain the employment of current and future NEOs. Other Compensation and Benefits All executive officers can participate in certain group health, dental, disability and term life insurance benefits. In accordance with our policy, all such benefits are generally available to our employees including employees of our subsidiaries. In addition, we provide our NEOs with paid time off awards. Clawback Provision We have provisions in our incentive programs requiring each current and former executive officer to forfeit any erroneously awarded incentive-based compensation. This incentive-based compensation would have been received by any such officer during the three completed years preceding the date on which we are required to prepare an accounting restatement due to our material non-compliance with any financial reporting requirement under federal securities laws. None of our directors or executives were required to forfeit any erroneously awarded incentive-based compensation in 2022. Our provisions further state that the altering, inflating and/or inappropriate manipulation of performance/financial results or any other infraction of recognized ethical business standards will subject any participant to disciplinary action up to and including termination of employment. In addition, any incentive compensation as provided by the plan to which the participant would otherwise be entitled will be revoked or subject to “clawback.” All cash and equity awards made under the 2019 Equity Plan will be subject to clawback, cancellation, recoupment, rescission, payback, reduction, or similar action in accordance with the terms of any clawback or similar policy or any applicable law related to such actions, as may be in effect from time-to-time. Stock Ownership Guidelines In 2022, we added stock ownership guidelines for our NEOs. Stock ownership guidelines require both ownership requirements as well as retention requirements. The CEO must own three times his or her annual base salary and other NEO’s must own one times their annual base salary. All equity granted (net of taxes withheld and/or transactions costs) must be held until the ownership requirement is met. Grants issued prior to 2022 are also subject to a post-vesting holding requirement of three years. The post-vesting holding requirement was eliminated in 2022 with the implementation of new stock ownership guidelines. Federal Income Tax Deductibility Limitations Section 162(m) of the U.S. Internal Revenue Code, or the Code, generally prohibits any publicly held corporation from taking a federal income tax deduction for compensation paid in excess of $1 million in any taxable year to the CEO and the other “covered employees” as defined in the rule. Under the tax laws in effect before 2018, compensation that qualified as “performance-based compensation” under Section 162(m) of the Code was deductible without regard to this limitation. Effective for tax years beginning after December 31, 2017, the Tax Cuts and Job Acts of 2017 generally eliminated the performance-based exemption, subject to a special rule that grandfathers certain awards and agreements that were in effect on November 2, 2017. While considering tax deductibility as only one of several considerations in determining compensation, the Compensation and Human Resources Committee believes the tax deduction limitation should not compromise its ability to structure compensation programs that provide benefits to us that outweigh the potential benefit of a tax deduction, and therefore, may approve compensation that is not deductible for tax purposes. 2023 PROXY STATEMENT Page 40 COMPENSATION DISCUSSION & ANALYSIS COMPENSATION COMMITTEE REPORT The Compensation and Human Resources Committee has reviewed and discussed this Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K with management, and based on such review and discussions, the Compensation Committee recommended this Compensation Discussion and Analysis be included in this proxy statement. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | BHB 2017 Base Salary1 | Peer Group Ranges of Base Salaries2 | BHB 2017 Total Cash Compensation3 | Peer Group Ranges of Total Cash Compensation4 | ||||||||||||
Curtis C. Simard | $ | 525,000 | $ | 475,000 | $ | 824,250 | $ | 683,000 | ||||||||
566,000 645,000 | 815,000 929,000 | |||||||||||||||
Josephine Iannelli | 350,000 | 252,000 283,000 335,000 | 497,000 | 326,000 366,000 433,000 | ||||||||||||
Richard B. Maltz | 350,000 | 278,000 352,000 434,000 | 497,000 | 372,000 471,000 580,000 | ||||||||||||
William J. McIver | 325,000 | 219,000 255,000 307,000 | 436,500 | 266,000 310,000 373,000 | ||||||||||||
Gregory W. Dalton | 230,000 | 233,000 265,000 295,000 | 305,000 | 294,000 335,000 373,000 |
Summary Compensation Table The following table discloses compensation for the years ended December 31, 2022, 2021 and 2020 received by the NEOs.
1.
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2. The amounts reported in this column represent | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3. | |
| NAME | | | | EMPLOYER 401(K) CONTRIBUTION MATCH | | | | MEMBERSHIP DUES | | | | HOUSING ALLOWANCE | | | | TAXABLE TRAVEL | | | | IMPUTED LIFE INSURANCE | | | | TOTAL | | ||||||||||||||||||
| Curtis C. Simard | | | | | $ | 12,200 | | | | | | $ | 35,437 | | | | | | $ | — | | | | | | $ | 1,994 | | | | | | $ | 1,932 | | | | | | $ | 51,563 | | |
| Josephine Iannelli | | | | | | 12,200 | | | | | | | 13,638 | | | | | | | — | | | | | | | 1,178 | | | | | | | 1,932 | | | | | | | 28,948 | | |
| Marion Colombo | | | | | | 12,200 | | | | | | | 11,092 | | | | | | | — | | | | | | | 32 | | | | | | | 3,137 | | | | | | | 26,461 | | |
| John M. Mercier | | | | | | 12,200 | | | | | | | 14,378 | | | | | | | — | | | | | | | 1,618 | | | | | | | 2,838 | | | | | | | 31,034 | | |
| Jason P. Edgar | | | | | | 12,200 | | | | | | | — | | | | | | | — | | | | | | | 9,195 | | | | | | | 1,057 | | | | | | | 22,451 | | |
| 1. | |
| | | | | | | | | | | | | Estimated Future Payouts Under Non-Equity Incentive Plan Awards1 | | | | Estimated future payouts under equity incentive plan awards2 | | | | All other stock awards: Number of stock units3(#) (j) | | | | Grant date fair value of stock awards4 (#) (k) | | ||||||||||||||||||||||||||||||||||||||||
| Name (a) | | | | Grant Type (b) | | | | Grant Date (c) | | | | Threshold ($) (d) | | | | Target ($) (e) | | | | Stretch ($) (f) | | | | Threshold (#) (g) | | | | Target (#) (h) | | | | Stretch (#) (i) | | | |||||||||||||||||||||||||||||||
| Curtis C. Simard | | | | Short-term | | | | | | | | | $ | 173,725 | | | | | | $ | 347,450 | | | | | | $ | 521,175 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Time-vested | | | | Jul-22 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7,324 | | | | | | $ | 208,661 | | |
| | | | | Performance | | | | Jul-22 | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,850 | | | | | | | 11,700 | | | | | | | 17,550 | | | | | | | | | | | | | | 333,333 | | |
| Josephine Iannelli | | | | Short-term | | | | | | | | | | 77,980 | | | | | | | 155,960 | | | | | | | 233,940 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Time-vested | | | | Jul-22 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3,753 | | | | | | | 106,923 | | |
| | | | | Performance | | | | Jul-22 | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,877 | | | | | | | 3,753 | | | | | | | 5,630 | | | | | | | | | | | | | | 106,923 | | |
| Marion Colombo | | | | Short-term | | | | | | | | | | 49,335 | | | | | | | 98,670 | | | | | | | 148,005 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Time-vested | | | | Jul-22 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,424 | | | | | | | 69,060 | | |
| | | | | Performance | | | | Jul-22 | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,212 | | | | | | | 2,424 | | | | | | | 3,636 | | | | | | | | | | | | | | 69,060 | | |
| John M. Mercier | | | | Short-term | | | | | | | | | | 49,335 | | | | | | | 98,670 | | | | | | | 148,005 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Time-vested | | | | Jul-22 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,424 | | | | | | | 69,060 | | |
| | | | | Performance | | | | Jul-22 | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,212 | | | | | | | 2,424 | | | | | | | 3,636 | | | | | | | | | | | | | | 69,060 | | |
| Jason Edgar | | | | Short-term | | | | | | | | | | 47,745 | | | | | | | 95,490 | | | | | | | 143,235 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Time-vested | | | | Jul-22 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,346 | | | | | | | 66,838 | | |
| | | | | Performance | | | | Jul-22 | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,173 | | | | | | | 2,346 | | | | | | | 3,519 | | | | | | | | | | | | | | 66,838 | | |
| 1.
| | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2. Amounts in columns | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3. Represents the number of shares subject to time-vested | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4. Fair values of performance awards in | |
| | | | | STOCK AWARDS | | ||||||||||||||||||||||||
| NAME (a) | | | | NUMBER OF SHARES OR UNITS OF STOCK THAT HAVE NOT VESTED1 (b) | | | | MARKET VALUE OF SHARES OR UNITS OF STOCK THAT HAVE NOT VESTED1 (c) | | | | EQUITY INCENTIVE PLAN AWARDS; NUMBER OF UNEARNED SHARES, UNITS OR OTHER RIGHTS THAT HAVE NOT VESTED2 (d) | | | | EQUITY INCENTIVE PLAN AWARDS; MARKET OR PAYOUT VALUE OF UNEARNED SHARES, UNITS OR OTHER RIGHTS THAT HAVE NOT VESTED2 (e) | | ||||||||||||
| Curtis C. Simard | | | | | | 7,380 | | | | | | $ | 236,470 | | | | | | | 35,534 | | | | | | $ | 1,138,510 | | |
| Josephine Iannelli | | | | | | 3,783 | | | | | | | 121,214 | | | | | | | 11,395 | | | | | | | 365,094 | | |
| Marion Colombo | | | | | | 2,443 | | | | | | | 78,288 | | | | | | | 7,360 | | | | | | | 235,799 | | |
| John M. Mercier | | | | | | 2,443 | | | | | | | 78,288 | | | | | | | 7,360 | | | | | | | 235,799 | | |
| Jason Edgar | | | | | | 2,365 | | | | | | | 75,767 | | | | | | | 7,122 | | | | | | | 228,202 | | |
| 1.
| | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2. Amounts in column (d) represent | |
| | | | | STOCK AWARDS1 | | ||||||||||
| NAME | | | | NUMBER OF SHARES ACQUIRED ON VESTING | | | | VALUE REALIZED ON VESTING1 | | ||||||
| Curtis C. Simard | | | | | | 6,510 | | | | | | $ | 178,374 | | |
| Josephine Iannelli | | | | | | 3,275 | | | | | | | 89,735 | | |
| Marion Colombo | | | | | | 2,089 | | | | | | | 57,239 | | |
| John M. Mercier | | | | | | 2,089 | | | | | | | 57,239 | | |
| Jason Edgar | | | | | | 1,996 | | | | | | | 54,690 | | |
| 1.
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Value of Initial $100 Fixed Investment Based On: | | | | | | | | | | | | | | | | ||||||||||
| Year (a) | | | | Summary Comp for Principal Executive Officer (PEO) (b)1 | | | | Comp Actually Paid to PEO (c)2 | | | | Average Summary Comp for Other Named Executive Officers (NEOs) (d)3 | | | | Average Comp Actually Paid to Other NEOs (e)4 | | | | Total Shareholder Return (TSR) (f)5 | | | | TSR of Peer Group (g)6 | | | | Net Income (in thousands) (h)7 | | | | Company Selected Measure– Adjusted Return on Assets (i)8 | | ||||||||||||||||||||||||
| 2022 | | | | | $ | 1,809,632 | | | | | | $ | 1,889,352 | | | | | | $ | 745,898 | | | | | | $ | 750,137 | | | | | | $ | 142.65 | | | | | | $ | 108.65 | | | | | | $ | 43,557 | | | | | | | 1.17% | | |
| 2021 | | | | | | 1,661,531 | | | | | | | 1,970,250 | | | | | | | 618,349 | | | | | | | 720,925 | | | | | | | 124.33 | | | | | | | 108.25 | | | | | | | 39,299 | | | | | | | 1.10% | | |
| 2020 | | | | | | 1,577,467 | | | | | | | 1,495,406 | | | | | | | 704,049 | | | | | | | 674,936 | | | | | | | 93.93 | | | | | | | 82.00 | | | | | | | 33,244 | | | | | | | 0.93% | | |
| 1. The | |
| 2. The dollar amounts reported in column (c) represent the amount of “compensation actually paid” to Mr. Simard, as computed in accordance with Item 402(v) of Regulation S-K. The dollar amounts do not reflect the actual amount of compensation earned by or paid to Mr. Simard during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to Mr. Simard’s total compensation for each year to determine the compensation actually paid: | |
| Year | | | | Reported Summary Compensation Table Total for PEO | | | | Reported Value of Equity Awards(a) | | | | Equity Award Adjustments(b) | | | | Compensation Actually Paid to PEO | | ||||||||||||
| 2022 | | | | | $ | 1,809,632 | | | | | | $ | (541,994) | | | | | | $ | 621,714 | | | | | | $ | 1,889,352 | | |
| 2021 | | | | | | 1,661,531 | | | | | | | (438,555) | | | | | | | 747,274 | | | | | | | 1,970,250 | | |
| 2020 | | | | | | 1,577,467 | | | | | | | (425,764) | | | | | | | 343,703 | | | | | | | 1,495,406 | | |
| (a) The grant date fair value of
total of the amounts | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (b) The equity award adjustments for each applicable year include the addition (or subtraction, as applicable) of the following: (i) the year-end fair value of any equity awards granted in the applicable year that are outstanding and unvested as of the end of the year; (ii) the amount of change as of the end of the applicable year (from the end of the prior fiscal year) in fair value of any awards granted in prior years that are outstanding and unvested as of the end of the applicable year; (iii) for awards that are granted and vest in same applicable year, the fair value as of the vesting date; (iv) for awards granted in prior years that vest in the applicable year, the amount equal to the
| |
| Year | | | | Year End Fair Value of Equity Awards Granted During the Year | | | | Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards Granted in the Prior Year | | | | Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in the Year | | | | Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year | | | | Value of Dividends or other Earnings Paid on Stock or Option Awards not Otherwise Reflected in Fair Value or Total Compensation | | | | Total Equity Award Adjustments | | ||||||||||||||||||
| 2022 | | | | | $ | 609,529 | | | | | | $ | 92,097 | | | | | | $ | (79,837) | | | | | | $ | (9,968) | | | | | | $ | 9,893 | | | | | | $ | 621,714 | | |
| 2021 | | | | | | 563,634 | | | | | | | 140,525 | | | | | | | — | | | | | | | 43,115 | | | | | | | — | | | | | | | 747,274 | | |
| 2020 | | | | | | 501,690 | | | | | | | (84,420) | | | | | | | — | | | | | | | (73,567) | | | | | | | — | | | | | | | 343,703 | | |
| 3. The dollar amounts reported in column (d) represent the | | ||||
| 4. The dollar amounts reported in column (e) represent the average amount of “compensation actually paid” to the NEOs as a group (excluding Mr. Simard), as computed in accordance with Item 402(v) of Regulation S-K. The dollar amounts do not reflect the actual average amount of compensation earned by or paid to the NEOs as a group (excluding Mr. Simard) during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to average total compensation | |
| Year | | | | Average Reported Summary Compensation Table Total for Non-PEO NEOs | | | | Average Reported Value of Equity Awards (a) | | | | Average Equity Adjustments (b) | | | | Average Compensation Actually Paid to Non-PEO NEOs | | ||||||||||||
| 2022 | | | | | $ | 745,898 | | | | | | $ | (155,940) | | | | | | $ | 160,179 | | | | | | $ | 750,137 | | |
| 2021 | | | | | | 618,349 | | | | | | | (99,138) | | | | | | | 201,714 | | | | | | | 720,925 | | |
| 2020 | | | | | | 704,049 | | | | | | | (138,261) | | | | | | | 109,148 | | | | | | | 674,936 | | |
| The amounts deducted or added in calculating the total | |
| Year | | | Average Year End Fair Value of Equity Awards Granted During the Year | | | Average Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards Granted in the Prior Year | | | Average Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in the Year | | | Average Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year | | | Average Value of Dividends or other Earnings Paid on Stock or Option Awards not Otherwise Reflected in Fair Value or Total Compensation | | | Total Average Equity Award Adjustments | | ||||||||||||||||||
| 2022 | | | | $ | 175,371 | | | | | $ | 11,604 | | | | | $ | (28,446) | | | | | $ | (1,196) | | | | | $ | 2,846 | | | | | $ | 160,179 | | |
| 2021 | | | | | 169,883 | | | | | | 19,643 | | | | | | — | | | | | | 12,188 | | | | | | — | | | | | | 201,714 | | |
| 2020 | | | | | 155,730 | | | | | | (12,361) | | | | | | — | | | | | | (34,221) | | | | | | — | | | | | | 109,148 | | |
| 5. Cumulative TSR is calculated by dividing the sum of | | |||||||||||||
| 6. Represents the weighted peer group TSR, weighted according to the respective companies’ stock market capitalization at the beginning of each period for which a return is indicated. The peer group used for this purpose
7. | | |||||||||||||
| 8. This is a non-GAAP measure that excludes gains or losses on sale of | |
| Termination Event | | | | Curtis C. Simard | | | | Josephine Iannelli | | | | Marion Colombo | | | | John M. Mercier | | | | Jason Edgar | | |||||||||||||||
| Termination Without Cause or With Good Reason—Not in Connection with Change in Control | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash severance | | | | | $ | 2,084,700 | | | | | | $ | 1,336,800 | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Pro rata bonus | | | | | | 521,175 | | | | | | | 233,940 | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Benefits | | | | | | 43,245 | | | | | | | 43,245 | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Equity vesting | | | | | | 1,443,602 | | | | | | | 579,350 | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Total | | | | | $ | 4,092,722 | | | | | | $ | 2,193,335 | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Termination Without Cause or With Good Reason—In Connection with Change in Control1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash severance | | | | | $ | 3,648,225 | | | | | | $ | 2,038,620 | | | | | | $ | 657,800 | | | | | | $ | 657,800 | | | | | | $ | 636,600 | | |
| Pro rata bonus | | | | | | 521,175 | | | | | | | 233,940 | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Benefits | | | | | | 43,245 | | | | | | | 43,245 | | | | | | | 14,415 | | | | | | | 13,843 | | | | | | | 14,415 | | |
| Equity vesting | | | | | | 1,443,602 | | | | | | | 579,350 | | | | | | | 380,338 | | | | | | | 380,338 | | | | | | | 368,073 | | |
| Total | | | | | $ | 5,656,247 | | | | | | $ | 2,895,155 | | | | | | $ | 1,052,553 | | | | | | $ | 1,051,981 | | | | | | $ | 1,019,088 | | |
| Termination Event | | | | Curtis C. Simard | | | | Josephine Iannelli | | | | Marion Colombo | | | | John M. Mercier | | | | Jason Edgar | | |||||||||||||||
| Death, Disability or Retirement2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash severance | | | | | $ | 694,900 | | | | | | $ | 445,600 | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Pro rata bonus | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Benefits | | | | | | 31,182 | | | | | | | 31,182 | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Equity vesting | | | | | | 666,139 | | | | | | | 228,604 | | | | | | | 144,861 | | | | | | | 144,861 | | | | | | | 140,182 | | |
| Total | | | | | $ | 1,392,221 | | | | | | $ | 705,386 | | | | | | $ | 144,861 | | | | | | $ | 144,861 | | | | | | $ | 140,182 | | |
| Any Other Termination of Employment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash severance | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Pro rata bonus | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Benefits | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Equity vesting | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
| Total | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | | | | | | — | | |
| 1. The | |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans | |||||||
Equity compensation plans approved by security holders | 169,921 | $ | 18.95 | 185,223 | ||||||
Equity compensation plans not approved by security holders | — | N/A | — | |||||||
Total | 169,921 | $ | 18.95 | 185,223 |
| CEO Pay Ratio | |
| CEO PAY RATIO | | ||||||
| CEO Annual Total Compensation | | | | $ | 1,267,638 | | |
| Median Employee Annual Total Compensation | | | | $ | 58,282 | | |
| CEO to Median Employee Pay Ratio | | | | | 21.75 | | |
| PROPOSAL 2 ADVISORY APPROVAL OF 2022 EXECUTIVE COMPENSATION | |
| OUR BOARD UNANIMOUSLY RECOMMENDS A VOTE “FOR” THE APPROVAL OF THIS NON-BINDING, ADVISORY PROPOSAL REGARDING THE | |
| PROPOSAL 3 ADVISORYVOTE ON THE FREQUENCY OF FUTURE ADVISORY VOTES ON THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS | |
| OUR BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU VOTE FOR “ONE YEAR” AS TO THE FREQUENCY FOR HOLDING ADVISORY VOTES ON OUR NAMED EXECUTIVE OFFICER COMPENSATION | |
| Proposal 4 Ratification of Appointment of Independent Registered Public Accounting Firm | |
| OUR BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT OUR SHAREHOLDERS VOTE “FOR” RATIFICATION OF THE | |
| Principal Accounting Fees and Services | |
| SERVICE | | | | 2021 | | | | 2022 | | ||||||
| Audit Fees1 | | | | | $ | 389,943 | | | | | | $ | 402,630 | | |
| Audit-Related Fees2 | | | | | | 47,500 | | | | | | | — | | |
| Tax Fees | | | | | | — | | | | | | | — | | |
| All Other Fees | | | | | | — | | | | | | | — | | |
| Total | | | | | $ | 437,443 | | | | | | $ | 402,630 | | |
| 1.
| |
| 2. Includes services related to assistance with general accounting matters, work performed on | |
| Other Matters | |
| David M. Colter, Chair Steven H. Dimick Daina H. Belair | | | Debra B. Miller Scott G. Toothaker
2023 PROXY STATEMENT Page A-1 ANNUAL MEETING OF SHAREHOLDERS ANNUAL MEETING OF SHAREHOLDERS Time and date: 10:00 a.m., Eastern Time, on Thursday, May 18, 2023 Record date: Close of business on March 15, 2023 Attendance: Shareholders as of the record date may participate in the Annual Meeting: In Person: Bar Harbor Club 111 West Street Bar Harbor, Maine How to vote: Over the internet at www.proxyvote.com, by telephone at 1-833-814-9457, or in person at the Annual Meeting, or by mail addressed to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717 The deadline for transmitting Internet, telephone, and email voting is up until 11:59 p.m. Eastern Time on May 17, 2023 for shares held directly and by 11:59 p.m. Eastern Time on May 15, 2023 for shares held in a Plan. Please have your proxy card in hand when utilizing these other forms of voting. Votes Shareholders as of the record date will be entitled to one vote at the Annual Meeting for each outstanding share of common stock Common stock outstanding as of record date: 15,124,451 shares 2023 PROXY STATEMENT Page A-2 BAR HARBOR BANKSHARESC/O BROADRIDGE CORPORATE ISSUER SOLUTIONSP.O. BOX 1342BRENTWOOD, NY 11717 SCAN TOVIEW MATERIALS & VOTE VOTE BY INTERNET - www.proxyvote.com or scan the QR Barcode aboveUse the Internet to transmit your voting instructions and for electronic delivery of informationup until 11:59 p.m. EDT on May 17, 2023 for shares held directly and by 11:59 p.m. EDTon May 15, 2023 for shares held in a Plan. Have your proxy card in hand when you accessthe web site and follow the instructions to obtain your records and to create an electronicvoting instruction form.ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALSIf you would like to reduce the costs incurred by our company in mailing proxy materials,you can consent to receiving all future proxy statements, proxy cards and annual reportselectronically via e-mail or the Internet. To sign up for electronic delivery, please follow theinstructions above to vote using the Internet and, when prompted, indicate that you agreeto receive or access proxy materials electronically in future years.VOTE BY PHONE - 1-800-690-6903Use any touch-tone telephone to transmit your voting instructions. Vote by 11:59 p.m. EDTon May 17, 2023 for shares held directly and by 11:59 p.m. EDT on May 15, 2023for shares held in a Plan. Have your proxy card in hand when you call and then follow theinstructions.VOTE BY MAILMark, sign and date your proxy card and return it in the postage-paid envelope wehave provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way,Edgewood, NY 11717. TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: V03844-P85703 KEEP THIS PORTION FOR YOUR RECORDS THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. DETACH AND RETURN THIS PORTION ONLY BAR HARBOR BANKSHARES The Board of Directors recommends you vote “FOR” eachdirector nominee in Proposal 1, “FOR” Proposals 2 and 4, and“FOR 1 YEAR” in Proposal 3. 1. ELECTION OF THE FOLLOWING NOMINEES AS DIRECTORS: Nominees: 1a. Daina H. Belair 1b. Matthew L. Caras 1c. David M. Colter 1d. Martha T. Dudman 1e. Lauri E. Fernald 1f. Debra B. Miller 1g. Brendan J. O’Halloran 1h. Brian D. Shaw 1i. Curtis C. Simard 1j. Kenneth E. Smith 1k. Scott G. Toothaker 1l. David B. Woodside HOUSEHOLDING ELECTION - please indicate if you consent ! !to receive certain future investor communications in a singlepackage per household. For Withhold Yes No 2. To hold a non-binding advisory vote on the compensation of theCompany’s named executive officers. 3. To hold a non-binding advisory vote on the frequencyof holding future non-binding advisory votes on thecompensation of the Company’s named executive officers. 4. To ratify the appointment of RSM US LLP as the independentregistered public accounting firm for the fiscal year endingDecember 31, 2023. NOTE: If any other matters properly come before the meeting, your proxieswill vote on these matters in accordance with the recommendations ofthe Board of Directors. Please sign exactly as your name(s) appear(s) hereon. When signing asattorney, executor, administrator, or other fiduciary, please give full titleas such. Joint owners should each sign personally. All holders must sign.If a corporation or partnership, please sign in full corporate or partnershipname by authorized officer. For Against Abstain 1 Year 2 Years 3 Years Abstain For Against Abstain Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Date Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:The Notice of Annual Meeting of Shareholders, Proxy Statement, Form 10-K and Annual Report are available at www.proxyvote.com.Bar Harbor BanksharesAnnual Meeting of ShareholdersMay 18, 2023, 10:00 AM, EDTThis proxy is solicited by the Board of DirectorsThe shareholder(s) hereby appoint(s) Martha T. Dudman, Kenneth E. Smith and David B. Woodside, or any of them, as proxies, each with the power to appoint his/her substitute, and hereby authorize(s) them to represent and to vote, as designated on the reverse side of this ballot, all of the shares of Common Stock of Bar Harbor Bankshares that the shareholder(s) of record as of March 15, 2023 is/are entitled to vote at the Annual Meeting of Shareholders to be held at 10:00 AM, ET on May 18, 2023, at 111 West Street Bar Harbor, ME 04609, and any adjournment or postponement thereof.If the shareholder(s) is/are a participant(s) in Bar Harbor Bankshares's 401(k) Plan ("Plan") and has/have Common Stock of Bar Harbor Bankshares allocated or his, her or their account, the signer(s) instruct(s) the trustee of such plan to vote such shares of Common Stock, in person or by proxy, in accordance with the instructions on the reverse side at the 2023 Annual Meeting of Shareholders. The plan trustee will vote the allocated shares in such plan as directed by each participant who provides voting instructions to it before 11:59 PM ET on May 15, 2023.In addition to the voting methods set forth on the reverse side of this proxy card, non-institutional investors may also vote their shares by sending an email, which includes the shareholder's full name and the number of shares of Common Stock owned by the shareholder as of the record date of March 15, 2023, to bhb@allianceadvisors.com. The deadline for transmitting email voting is up until 11:59 p.m. EDT on May 17, 2023 for shares held directly and by 11:59 p.m. EDT on May 15, 2023 for shares held in a Plan.The shareholder(s) hereby revoke(s) all proxies previously given by the shareholder(s) to vote in the 2023 Annual Meeting of Shareholders and any adjournments or postponements and acknowledges receipt of Bar Harbor Bankshares's Proxy Statement for the 2023 Annual Meeting of Shareholders.This proxy, when properly executed, will be voted in the manner directed herein. If no such direction is made, this proxy will be voted in accordance with the Board of Directors' recommendations.Continued and to be signed on reverse side 0000743367 6 2022-01-01 2022-12-31 |