Five Star Bank president and CEO Martin K. Birmingham's total compensation in 2016 increased 8.5 percent from a year ago, despite a 2.2 percent drop in his salary.
Five Star's parent, Warsaw-based Financial Institutions, said in a regulatory filing that Birmingham's total compensation was $1.04 million, even though his salary was reduced to $503,000 from $514,000 the year before.
The bank said Birmingham's salary was cut – and that three other top executives' salaries were frozen – due to factors including "economic uncertainties" and expenses such as a proxy contest that ended up costing the bank more than $2 million. But the bank said the same four executives received unspecified salary increases in 2017.
Meanwhile, the bank nominated Donald K. Boswell, president of the Western New York Public Broadcasting Association, to serve on its board of directors. Board elections will take place at the bank's annual meeting on June 21 in Warsaw. Boswell previously served on the board of HSBC Bank USA.
A current board member, John E. Benjamin, previously announced he will not stand for re-election at this year's meeting. He has served on the board since 2002, including a stint as interim CEO.