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Daniel W. Potts

Director at ACNB
Board

About Daniel W. Potts

Independent Class 3 director of ACNB Corporation since 2004; age 72 as of March 13, 2025. Designated Audit Committee Financial Expert. Career spans 40+ years in global business, including 15 years with major accounting firms and senior executive positions in financial services; retired from Deloitte Consulting in 2023. Also serves on the ACNB Insurance Services, Inc. board since 2005.

Past Roles

OrganizationRoleTenureCommittees/Impact
Deloitte ConsultingSenior executive; retiredRetired in 2023Strategic, operations, technology background supports audit oversight
Major accounting firmsAccounting/assurance roles15 yearsDeep financial accounting expertise, supports designation as audit committee financial expert
Financial services industrySenior executive positionsVariousProvides insight into bank operations, risk, and strategy

External Roles

OrganizationRoleTenureNotes
ACNB Insurance Services, Inc.DirectorSince 2005Non-employee directors receive $800 per Insurance Services board meeting attended

Board Governance

  • Committees: Audit Committee member; Nominating Committee member; designated Audit Committee Financial Expert; independence affirmed under SEC/Nasdaq. Audit Committee met 5 times in 2024; Nominating Committee met 2 times.
  • Attendance: The Board met 13 times in 2024; total Board and committee meetings were 30. Each director attended at least 75% of meetings of the Board and their committees; all directors attended the 2024 Annual Meeting.
  • Independence: Board determined Mr. Potts is independent; no other transactions/relationships/arrangements noted for him. Only independent directors serve on the Audit, Compensation, and Nominating Committees.
  • Chairs: Audit Committee chaired by Kimberly S. Chaney; Nominating Committee chaired by Donna M. Newell.
  • Risk oversight: Audit Committee leads risk oversight and meets privately with internal/external auditors; two directors (Chaney and Potts) designated as Audit Committee Financial Experts.

Fixed Compensation

ComponentAmountNotes
Annual retainer (non-employee directors, since 7/1/2024)$45,000
Board meeting fee$860 per meeting
Committee meeting fee$540 per meeting
Audit Committee chair$6,450 annually
Compensation Committee chair$6,450 annually
Executive Committee chair$4,300 annually
Loan Committee chair$4,300 annually
Trust Committee chair$2,690 annually
Nominating Committee chair$2,000 annually
Chairman of the Board$37,625 annually
Vice Chairman of the Board$10,750 annually
Board Strategic Specialist$752.50 per quarter
Insurance Services board meeting fee$800 per meeting
Continuing education$135/hour (preapproved)
2024 Director Compensation — Daniel W. PottsAmount ($)
Fees Earned or Paid in Cash$40,166 (includes $4,000 for ACNB Insurance Services, Inc. board meetings)
Stock Awards$21,931
All Other Compensation (imputed life insurance)$1,864
Total$62,097

Other Director Benefits

  • Director Deferred Fee Plan: Directors may defer up to 100% of income; participants in 2024 were Chaney, Elsner, Herring, Kelley, Lott, Newell, and Stock (Potts not listed).
  • Director Supplemental Life Insurance Plan: Eligible for $250,000 benefit (or $100,000 under certain conditions); imputed income included in taxable income.
  • Long-Term Care Insurance: Eligible; monthly maximum base benefit of $4,000; premiums paid by the Bank.

Performance Compensation

  • Equity retainer election: Directors may elect 70% or 100% of annual retainer paid in common stock under the 2018 Omnibus Stock Incentive Plan; paid quarterly at the Dividend Reinvestment Plan price.
  • Variable Compensation Plan (directors): Directors eligible under the same terms as employees for restricted stock awards to align with shareholders; no Variable Compensation Plan awards were granted to non-employee directors in 2024.
Director Variable Compensation — 2024Result
Variable Compensation Plan awards to non-employee directorsNone granted
Equity delivery mechanism for retainerStock awards under 2018 Omnibus Plan (director election)

Other Directorships & Interlocks

  • Compensation Committee interlocks: None at the Corporation; all Compensation Committee members in 2024 were independent outside directors, not current or former officers or employees.
  • Other public company directorships: Potts’ proxy biography does not disclose current public company boards beyond ACNB entities.

Expertise & Qualifications

  • Audit Committee Financial Expert; independent.
  • 40+ years global business experience; 15 years with major accounting firms; senior executive roles in financial services; retired from Deloitte Consulting in 2023.
  • Long-tenured ACNB director since 2004; service also on ACNB Bank board.

Equity Ownership

Ownership (as of Dec 31, 2024)Shares% of Class
Daniel W. Potts — Beneficial Ownership8,811Less than 1%

Notes

  • Beneficial ownership determined under SEC Rule 13d-3; table percentages for directors generally <1% unless otherwise noted.

Governance Assessment

  • Strengths:
    • Independence affirmed with no related-party transactions disclosed for Potts; designated Audit Committee Financial Expert bolstering financial oversight quality.
    • Board and committee structure robust; Audit (5 meetings) and Nominating (2 meetings) activity supports ongoing governance and risk oversight; directors met attendance expectations and all attended the annual meeting.
    • Compensation mix includes equity via retainer election; Potts received stock awards in 2024 ($21,931), supporting alignment with shareholders.
  • Potential concerns:
    • Share ownership is modest (<1% of outstanding); while typical for community bank directors, lower absolute ownership may limit “skin-in-the-game” optics.
    • Insurance-related perquisites (life and long-term care) create minor imputed income but are standard and broadly provided; not shareholder-unfriendly in context.
  • No red flags observed:
    • No related person transactions for Potts; no Section 16(a) filing delinquencies reported for 2024.

Overall governance signal: Positive. Potts’ independence, audit expertise, long tenure, and participation on key committees support board effectiveness. Equity-based retainer elections and 2024 stock awards enhance alignment, with no conflicts or attendance issues disclosed.