defr14a
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
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Fauquier Bankshares, Inc.
 
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Explanatory Note
     The purpose of this amendment to the definitive proxy statement (“Proxy Statement”) of Fauquier Bankshares, Inc. (the “Company”), filed with the Securities and Exchange Commission on April 16, 2010, is to make certain corrections to the compensation information provided for Randy K. Ferrell and Eric P. Graap with respect to benefits under the Company’s Supplemental Executive Retirement Plan (the “Executive SERP”).
     For Mr. Ferrell, the corrections are: (a) to decrease by $54,475 to $139,896 the amount shown for 2009 in the “Change in Pension Value and Nonqualified Deferred Compensation Earnings” column in the Summary Compensation Table on page 18 of the Proxy Statement, to decrease by $54,475 to $75,294 the change in value of the accumulated benefit under the Executive SERP from December 31, 2008 to December 31, 2009 indicated in footnote number 3 to such table, and to make a related adjustment to the amount shown for 2009 in the “Total” column in the table such that the amount is decreased by $54,475 to $571,443; (b) to decrease by $54,475 to $574,508 the present value of accumulated benefit under the Executive SERP as of December 31, 2009, as shown in the Pension Benefits Table on page 21 of the Proxy Statement; and (c) to increase by $50,363 to $70,601 the amounts shown in the table on page 27 of the Proxy Statement with respect to potential payments upon termination under the Executive SERP, and make related adjustments to the “Total Value” amounts in such table relating to those employment termination circumstances in which payments from the Executive SERP would contribute to Mr. Ferrell’s potential total compensation.
     For Mr. Graap, the corrections are: (a) to decrease by $86,819 to $69,732 the amount shown for 2009 in the “Change in Pension Value and Nonqualified Deferred Compensation Earnings” column in the Summary Compensation Table on page 18 of the Proxy Statement, to decrease by $86,819 to $37,574 the change in value of the accumulated benefit under the Executive SERP from December 31, 2008 to December 31, 2009 indicated in footnote number 3 to such table, and to make a related adjustment to the amount shown for 2009 in the “Total” column in the table such that the amount is decreased by $86,819 to $321,742; (b) to decrease by $86,819 to $184,892 the present value of accumulated benefit under the Executive SERP as of December 31, 2009, as shown in the Pension Benefits Table on page 21 of the Proxy Statement; and (c) to increase by $76,810 to $109,921 the amounts shown in the table on page 28 of the Proxy Statement with respect to potential payments upon termination under the Executive SERP, and make related adjustments to the “Total Value” amounts in such table relating to those employment termination circumstances in which payments from the Executive SERP would contribute to Mr. Graap’s potential total compensation.
     The tables referenced above have been revised to reflect the corrected information and are presented on the following pages. The revised tables should be substituted for the corresponding tables appearing in the Proxy Statement.

 

 

Summary Compensation Table
                                                         
                                    Change in        
                                    Pension Value        
                                    and        
                                    Nonqualified        
                            Non-Equity   Deferred        
                            Incentive Plan   Compensation   All Other    
Name and           Salary   Stock Awards   Compensation   Earnings   Compensation   Total
Principal Position   Year   ($)   ($)1   ($)2   ($)3   ($)   ($)
Randy K. Ferrell
President & Chief Executive Officer
     2009       250,000       87,502       60,000       139,896       34,045  4     571,443  
 
     2008       250,000       69,561       —       281,685       35,271       636,517  
 
     2007       235,645       66,751       77,292       151,279       36,923       567,890  
Gregory D. Frederick
Former Chief Operating Officer5
     2009       132,500       2,686       —       —       152,442  6     287,628  
 
     2008       159,000       1,126       —       40,484       19,369       219,979  
 
     2007       150,000       —       36,900       9,454       15,904       212,258  
Eric P. Graap
Chief Financial Officer
     2009       166,000       41,508       29,880       69,732       14,622  7     321,742  
 
     2008       166,000       28,409       —       128,903       13,086       336,398  
 
     2007       154,000       26,797       31,570       44,548       13,853       270,768  
(footnotes 1, 2 and 4-7 in the Proxy Statement are unchanged; footnote 3 is revised in its entirety as set forth below)
 
(3)   The amounts in this column reflect the combined change in value of each NEO’s accumulated benefit under the Pension Plan and the Executive SERP. Mr. Ferrell’s change in accumulated benefit reflects a $64,602 increase with respect to the Pension Plan and a $75,294 increase with respect to the Executive SERP. Mr. Frederick’s change in accumulated benefit reflects a $21,978 decrease with respect to the Pension Plan and a $27,960 decrease with respect to the Executive SERP. Mr. Graap’s change in accumulated benefit reflects a $32,158 increase with respect to the Pension Plan and a $37,574 increase with respect to the Executive SERP. Because none of the NEOs had reached age 60 as of December 31, 2009, none are currently entitled to receive the amount of benefit reflected in the table for the Executive SERP because such amounts are not yet vested.

 

 

Pension Benefits
Fiscal 2009
                                 
            Number of Years   Present Value of   Payments
            Credited Service 1   Accumulated Benefit 2   During Last Fiscal Year
Name   Plan Name   (#)   ($)   ($)
Randy K. Ferrell
   Pension Plan     15       411,076       —  
 
   Executive SERP     15.25       574,508       —  
Gregory D. Frederick
   Pension Plan     —       —       —  
 
   Executive SERP     —       —       —  
Eric P. Graap
   Pension Plan     9       166,454       —  
 
   Executive SERP     9.0833       184,892       —  
(footnotes to table in the Proxy Statement are unchanged)

 

 

Potential Payments Upon Termination or Change in Control
 
    Termination with no Change in Control           Termination with Change in Control
                            Termina-                                           Termina-    
                    Termina-   tion by                                   Termina-   tion by    
                    tion by   Company                                   tion by   Company    
                    Company   for Cause                                   Company   for Cause    
                    without   or                                   without   or    
                    Cause or   Resigna-           Change in                   Cause or   Resigna-   Resignation of
                    Resigna-   tion of           Control                   Resigna-   tion of   Executive for
                    tion of   Executive           with or                   tion of   Executive   Other than
Executive Benefits and                   Executive   without           without                   Executive   without   Good Reason
Payments Upon                   for Good   Good           Termination                   for Good   Good   including
Termination   Death   Disability1   Reason   Reason   Retirement   2   Death   Disability   Reason 3   Reason   Retirement
Randy K. Ferrell – Chief Executive Officer                                                                                
Compensation:
                                                                                        
Base Salary
   $ 62,500       —       —       —       —       —     $ 62,500     $ 62,500       —       —       —  
Long-Term Incentive:
                                                                                        
Restricted Stock Vesting
     188,412     $ 188,412     $ 188,412       —     $ 188,412     $ 188,412       —       —       —       —       —  
Tax Liability due to Vesting
     —       —       —       —       —       60,292       —       —       —       —       —  
Benefits and Perquisites:
                                                                                        
Severance:
                                                                                        
Base Salary Continuation
     —       —       500,000       —       —       —       —       —     $ 926,900       —       —  
Current Year Prorated Bonus
     60,000       60,000       60,000       —       60,000       —       60,000       60,000       60,000       —     $ 60,000  
Bonus Continuation
     —       —       60,000       —       —       —       —       —       —       —       —  
Health and Welfare Coverage
     —       —       34,713 4     —       —       —       52,070  4     52,070  4     52,070  4     —       —  
Long-Term Disability
     —       156       9,014       —       —       —       —       156       13,521       —       —  
Executive Split Dollar Insurance
     — 5     —       —       —       —       —       —       —       —       —       —  
Executive Survivor Income
     75,000       —       —       —       —       —       75,000       —       —       —       —  
Enhanced Retirement Program Benefits
     —       —       —       —       —       —       —       —       156,512  5     —       —  
Executive SERP
     —       —       —       —       —       —       70,601       70,601       70,601       —       70,601  
Total Value
   $ 385,912     $ 248,568     $ 852,139       —     $ 248,412     $ 248,704     $ 320,171     $ 245,327     $ 1,279,604       —     $ 130,601  
(footnotes to table in Proxy Statement are unchanged)

 

 

    Termination with no Change in Control           Termination with Change in Control
                            Termina-                                           Termina-    
                    Termina-   tion by                                   Termina-   tion by    
                    tion by   Company                                   tion by   Company    
                    Company   for Cause                                   Company   for Cause    
                    without   or                                   without   or    
                    Cause or   Resigna-                                   Cause or   Resigna-   Resignation of
                    Resigna-   tion of           Change in                   Resigna-   tion of   Executive for
                    tion of   Executive           Control with                   tion of   Executive   Other than
Executive Benefits                   Executive   without           or without                   Executive   without   Good Reason
and Payments Upon                   for Good   Good           Termina-                   for Good   Good   including
Termination   Death   Disability 1   Reason   Reason   Retirement   tion 2   Death   Disability   Reason 3   Reason   Retirement
Eric P. Graap – Chief Financial Officer                                                                                
Compensation:
                                                                                        
Annual Incentive
   $ 29,880     $ 29,880     $ 29,880       —     $ 29,880       —     $ 29,880     $ 29,880       —       —     $ 29,880  
Long-Term Incentive:
                                                                                        
Restricted Stock Vesting
     83,807       83,807       83,807       —       83,807     $ 83,807       —       —       —       —       —  
Tax Liability due to Vesting
     —       —       —       —       —       —       —       —       —       —       —  
Benefits and Perquisites:                                                                                
Severance:
                                                                                        
Base Salary Continuation
     —       —       —       —       —       —       —       —     $ 585,681       —       —  
Current Year Prorated Bonus
     —       —       —       —       —       —       —       —       29,880       —       —  
Bonus Continuation
     —       —       —       —       —       —       —       —       —       —       —  
Health and Welfare Coverage
     —       —       —       —       —       —       —       —       57,135  4     —       —  
Long-Term Disability
     —       113       —       —       —       —       —       113       7,129       —       —  
Executive Survivor Income
     75,000       —       —       —       —       —       75,000       —       —       —       —  
Enhanced Retirement Program Benefits
     —       —       —       —       —       —       —       —       82,313  5     —       —  
Executive SERP
     —       —       —       —       —       —       109,921       109,921       109,921       —       109,921  
Total Value
   $ 188,687     $ 113,800     $ 113,687       —     $ 113,687     $ 83,807     $ 214,801     $ 139,914     $ 872,059       —     $ 139,801  
(footnotes to table in Proxy Statement are unchanged)