Despite reported issues with former longtime President and CEO Michael Daly, who resigned last November, the board of directors at Berkshire Bank and its parent company seems to have confidence in the company’s executive team.

The bank entered into an agreement with new President and CEO Richard Marotta, stipulating that he will remain in his position for a term of three years. Commencing as of April 1, 2020, and on each subsequent April 1 thereafter, the compensation committees of the board of directors may renew the agreement for an additional year so that the remaining term will again become three years.

The agreement provides that Marotta will continue to receive an annual base salary of $675,000, and the base salary may be increased. In addition to his base salary, the agreements provide for participation in bonus programs and other benefit plans and arrangements applicable to executive employees.

The bank also entered into an amended and restated supplemental executive retirement agreement (SERP) with Marotta. SERP is the deferred compensation agreement between a company and the executive, whereby the company agrees to provide supplemental retirement income to the executive and his family if certain pre-agreed eligibility and vesting conditions are met by the executive.

The amended SERP is generally consistent with Marotta’s prior agreement except that the annual credit increased from $100,000 to $350,000.

From 2016 through 2018, the bank credited Marotta’s account with $300,000. Commencing as of Jan. 1, 2019, the bank shall credit Marotta’s account with $350,000 and an additional $350,000 on the first day of each new year from 2020 through and including 2025 for total contributions in the amount of $2.45 million. These annual contributions shall only be made if Marotta is employed with the bank as of the contribution date.

Marotta took home a total pay package of $1.43 million in 2017, according to a recent proxy report.