Customers Bancorp, Inc. Announces New Supplemental Executive Retirement Plan for CEO Samvir Sidhu

Key Points:

• On March 19, 2026, Customers Bancorp, Inc. (“Company”) entered into a new Supplemental Executive Retirement Plan (“Plan”) for CEO Samvir Sidhu.
• The new Plan supersedes the previous Supplemental Executive Retirement Plan adopted on May 3, 2021 for Mr. Sidhu.
• The Plan is designed to provide substantial supplemental, nonqualified pension benefits and incentivize Mr. Sidhu’s continued contributions to the Company’s success.
• The Plan provides for a monthly benefit payment of \$50,000 to Mr. Sidhu.
• Plan is structured as an income tax nonqualified, unfunded plan for deferred compensation, targeting select senior executives under ERISA and compliant with Section 409A of the Internal Revenue Code.
• On termination or separation, certain restrictive covenants apply, including non-compete, non-solicitation, and confidentiality agreements, to protect the Company’s interests.
• The Plan may have significant financial implications for the Company, as its obligations are accrued and expensed under GAAP.
• Shareholders should note that this arrangement is material, as it directly impacts executive retention, succession risk, and long-term leadership stability at Customers Bancorp.
• Full Plan details are available as Exhibit 10.1 in the SEC filing.

Shareholder Impact and Price Sensitivity:

• The introduction of a new, enhanced retirement benefit package for the CEO may be interpreted as a strategic move to retain key leadership, especially amid ongoing industry competition and succession risks.
• The guaranteed monthly benefit of \$50,000 is substantial and signals the Company’s commitment to executive retention. This may reassure investors concerned about management continuity.
• However, such executive compensation arrangements could also raise concerns among shareholders regarding corporate governance, cost structure, and impact on earnings, depending on how the liabilities are accrued and funded.
• Restrictive covenants (non-compete, non-solicitation, confidentiality) protect the Company from potential competitive threats and the loss of sensitive information, but they also highlight the strategic importance of Mr. Sidhu’s role.
• The Plan’s compliance with ERISA and Section 409A suggests careful legal and tax structuring, minimizing regulatory risks.
• No indication is given that Mr. Sidhu is leaving or changing roles; this Plan is intended to incentivize his continued service.
• Investors should monitor for any future changes in executive contracts, as compensation and retention plans can materially affect sentiment and share valuation.

Other Noteworthy Disclosures:

• Customers Bancorp’s common stock (trading symbol: CUBI) and 5.375% Subordinated Notes due 2034 (trading symbol: CUBB) are both listed on the New York Stock Exchange.
• The Company is not classified as an emerging growth company under SEC rules.
• Andrew B. Sachs, Executive Vice President – General Counsel and Corporate Secretary, signed the report.

Conclusion:

• The adoption of a new, significant retirement benefit for the CEO is a material development. It underscores management’s commitment to retaining top talent and may positively impact perceptions of leadership stability. Conversely, shareholders should scrutinize the cost and governance implications.
• As executive compensation is often a sensitive issue, this development could influence share price depending on investor sentiment and broader market context.

Disclaimer: The above article summarizes information disclosed by Customers Bancorp, Inc. in its SEC filings and is intended for informational purposes only. It does not constitute investment advice. Investors should consult official filings and their financial advisors before making investment decisions.

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