Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
Provident Financial Holdings , Inc. (NASDAQ:PROV), a $99.5 million market cap financial institution currently trading at undervalued levels according to InvestingPro analysis, disclosed a new severance agreement with Peter C. Fan, the company’s Senior Vice President, Chief Financial Officer, and Corporate Secretary, based on a recent 8-K filing with the SEC. The agreement, effective as of Thursday, May 22, 2025, outlines the terms of compensation in the event of an involuntary termination following a change in control of the company or its subsidiary, Provident Savings Bank, F.S.B.
The severance agreement is set to expire on February 28, 2026, and may be extended annually by the Board of Directors. If Mr. Fan is involuntarily terminated without cause, or resigns within 12 months following a change in control due to a demotion, loss of title, significant authority, reduction in annual compensation or benefits, or a relocation of more than 35 miles from his current workplace, he will be entitled to severance payments. The company, which maintains a P/E ratio of 15.5 and offers a 3.73% dividend yield, has demonstrated its commitment to shareholder returns with 24 consecutive years of dividend payments.
The compensation includes a lump sum equivalent to twice Mr. Fan’s current base salary and a lump sum equal to the largest annual bonus he received in the two years prior to termination. Additionally, the Bank or its successor is required to continue Mr. Fan’s life, medical, dental, vision, and disability coverage for two years post-termination.
The 8-K filing also included an exhibit detailing the severance agreement with Mr. Fan, dated Thursday, May 22, 2025. This move comes as Provident Financial Holdings continues to shape its executive compensation and severance policies amidst the evolving financial landscape.
This report is based on the information provided in the SEC filing by Provident Financial Holdings, Inc. For comprehensive analysis including financial health metrics and additional insights, visit InvestingPro, where you’ll find detailed research reports covering over 1,400 US stocks.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.