EX-10.13 5 aub-20201231xex10d13.htm EX-10.13

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Exhibit 10.13

Atlantic U n io n B a n k s h a res C o r p o r a t i o n

Executive S to c k O w n er sh ip P o l i c y

A dop ted December 10, 2020

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Pu rpo se

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T h e B o ard o f Di r e ct o rs (t h e “B oar d”) o f Atlantic U n ion Ba n ksh a r e s Cor p orati o n (“Atlantic U n io n” o r t h e "C or p orati on") b e li e v e s th at it is in th e b es t i n ter es t o f th e Cor p orati o n t o a lign th e fina n cial i n ter e s ts o f Atlantic U n ion executive officers with those of the Corporation’s shareholders. In this regard, the Compensation Committee (the “Committee”) recommended and the Board adopted minimum stock ownership and retention guidelines as set forth in this Policy. The Committee m ay m o d i f y th is P olicy an d th es e g u i d e lines in i t s d i s c r e ti on, t o th e extent p e rmit t e d b y th e Cor p orati on’s B y law s.

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Applicability and Effective Date

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T h is P olicy i s effective December 10, 2020, and supersedes the policy in e f f e ct prior to such date, an d is a pp lica b le t o any individual who is an executive officer of the Corporation, as defined in Section 16 of the Securities Exchange Act of 1934, as amended (t h e "P a rtic i p a n t s"). Q u es ti o n s r e gar d i n g th is P ol i cy sh ou ld b e d ir e cted to th e Cor p orati on’s Chief Hu m an Re s o u r c e Officer.

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M i n i mu m O wn e r s h i p Gu i d e li n es

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P a rtic i p a n ts m u s t o w n sh a r e s o f c om m on stock o f th e Cor p orati o n e qu al in v al u e t o th e follo w i n g s c h e du l e:

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P a r t i c i p a n t | V a lu e of Sh a r e s O w n e d
Chief E x e c u ti v e O f f ic e r | 5x B a s e Sal a ry
Pre s i d e n t and Chief Financial Officer | 3x B a s e Sal a ry
Ot h e r E x e c u t i v e O ff i ce rs | 1x B a s e Sal a ry

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S ati s fact i o n o f G u i d e li n es

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P a rtic i p a n ts may sati s f y th e o w n e r s h ip g u i de lin e s with c om m on stock in th e follo w i n g ca t e gori e s:

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| ● | Shar e s o w n e d d ir e ctly

| ● | Shar e s o w n e d i nd ir e ctly (e.g., b y a sp ou s e o r a tr u s t) if th e P artic i p a n t h as a pecuniary interest1 in such s h ar e s |

| ● | T i m e v es t e d r es t r ict e d s t o ck a nd/or r es tricted s t o ck un its g r a n ted und e r t h e Cor p orati on’s i n c e n t i v e p la n s or ot h e r e qu ity comp e n s a t ion a rr an g eme n t s |

| ● | T i m e v es t e d ph a n t o m s t o ck, p a y a b le in sh a r es, gr an ted und e r t h e Cor p orati on's i n c e n ti v e p la n s o r ot h e r e qu ity c o m p e n s a t ion a rr an g e me n ts |

| ● | Shar e s h e ld in b e ne f it p la n s (e.g. E SOP)

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U n e x e r ci s e d op ti on s an d un e ar n e d p e r f orma n c e s h ar e s a r e n ot co un ted t o w ard m ee ti n g th e g u i d e lin e s. In addition, the minimum ownership guidelines must be satisfied exclusive of any shares hedged, pledged or held in margin accounts.

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A ccumu l ation Pe r i o d

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All P a rtic i p a n ts m u s t acc u m u l a t e th e mini m u m nu m b e r of sh ar e s t o sat i sf y th e o w n e r s h ip g u i d e lines o ve r a f i v e-y e ar p e rio d. T h e p e riod w i ll b e m e a s u r e d u s i n g th e c a l e nd ar y e ar. Participant s i d e n tif ie d o r h ir e d in th e fut u re sh a ll b e r e qu ir e d t o a ccu m u la t e th e m i n i m u m nu m b e r of s h ar e s b e g i nn i n g o n Ja nu ary 1 s t of th e ye ar follo w i n g h iri n g or promotion.

1 “Pecuniary interest” means the opportunity, directly or indirectly, to profit or share in any profit derived from a transaction in the subject securities, as defined in Rule 16a-1 under the Securities Exchange Act of 1934, as amended.

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If the minimum required stock ownership level required by this Policy is increased, Participants will have until the later of three years from the date of such increase or three years following the end of their accumulation period under the prior policy, to achieve the new required ownership level.

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Va l u ation

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The Committee will review at least annually the v al u e o f a P artici p a n t’s h ol d i n gs as of a selected date (the “Valuation Date”). The holdings value to be b a s e d o n th e average cl o s i n g p rice o f a sh a re o f th e Cor p o r a t io n’s c o mm on st o ck for the 90 day period preceding the annual valuation date, the number of shares held in compliance with the guidelines, and the Participant’s t h e n c u rre n t b ase salary all determined as o f t h e Valuation D a te.

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Ret en tion R atio

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If a P a rtic i p a n t is n ot in c o m p lia n ce with t h is P olicy a t a n y Valuation D a t e, s u ch P artic i p a n t m u s t r e t a in 50 p e rc e n t of h is o r h e r v e s ted f u ll v al u e s h a r e s of the Corporation’s common stock acquired through the Corporation’s incentive plans or other equity compensation arrangements after such Valuation Date.

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S t oc k O p tion Hol d i n g Pe r i o d

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If a P artic i p a n t is n ot in c o m p lia n ce with th is P olicy a t a n y Valuation D a t e, s u ch P a rtici p a n t is p r oh i b ited f r o m se lli n g Cor p orati o n com m on s t o ck ac qu ir e d after s u ch Valuation D a te b y ex e rc i s i n g s t o ck o p ti on s. N otwit h s t and i n g th e p r e c e d i n g se n ten c e, P artic i p a n ts may i m m e d ia t e ly s e ll Cor p orati o n c o mm on s t o ck ac qu ir e d b y ex e rci s i n g s t o ck o p ti on s f o r t h e limited pu r p o s e s o f p a y i n g th e ex e rc i s e p ri c e o f th e s t o ck o p ti o n an d a n y a pp lica b le t ax wit hh ol d i n g.

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Re por ting a n d Co m p li a nc e

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Pr o gr e s s an d c o m p lia n ce in a c h i ev i n g th e m i n i m u m o w n e r sh ip g u i d e lines w ill b e r e v i e w e d a t least annually an d r e p orted t o th e Co m m i t tee.

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P a rtic i p a n ts n ot in c o m p lia n ce with th e min i m u m o w n e r s h i p g u i d e lines w ill r e c e i v e w rit t e n n otif i ca t ion from th e Cor p orati o n th at th e Rete n ti o n R a tio an d S t ock O p ti o n H o l d i n g Period d es c r i b e d a b o v e w i ll a pp ly un til th e P a rtic i p a n t p r o v i d e s w rit t e n n otif i ca t ion an d d oc u me n t a ti o n s a t i sf ac t ory to th e Cor p orat i on i nd icat i n g th at h e o r s h e h as c o m e i n to c o m p lia n c e w ith th is P olic y.

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T h e C o mm it t e e m ay m a k e c h a n g e s t o th is P olicy as it de e m s app r op ria te. Violat i o n s o f t h is P o licy may r e s u lt in a d j u s tm e n ts t o i n c e n t i v e-b a s e d c o m p e n s a t io n, such a s th e l o s s o f f u t u re gr an ts o f i n c e n ti v e p lan a w ar d s.

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Exceptions

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There may be instances where the ownership levels in this Policy would place a severe financial or personal hardship on a Participant. The Committee may, in its discretion, modify or delay application of the minimum ownership requirements in the case of demonstrated severe financial or personal hardship. The Committee will record in its meeting minutes any such action taken to modify or delay application of the minimum ownership requirements, although the Participant need not be named.

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A dm i n i st r ation

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T h e C o mm it t e e s h all b e r e s p o n s i b le for m o n it o ri n g th e app lica t ion o f th is P olic y. In th e e v e n t of an y c on f lict or i n co n s i s t e n cy b e tw e e n th is P o licy an d an y o t h e r p olic i e s, p l a n s, o r ot h e r m a t e ria l s o f t h e C or p or a ti on, th is P olicy s h all go v e r n.

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Approved: Atlantic Union Bankshares Corporation, December 10, 2020

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