UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 23, 2006
PROVIDENT FINANCIAL SERVICES, INC.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 001-31566 42-1547151
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(State or Other Jurisdiction) (Commission File No.) (I.R.S. Employer
of Incorporation) Identification No.)
830 Bergen Avenue, Jersey City, New Jersey 07306-4599
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (201) 333-1000
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement.
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On March 23, 2006, the Board of Directors of Provident Financial Services,
Inc. (the "Company"), on the recommendation of the Compensation Committee,
approved an annual performance-based incentive plan for the payment of incentive
compensation to certain officers of The Provident Bank, the Company's
wholly-owned savings bank subsidiary (the "Plan"), including senior executive
officers. The Plan provides for cash incentive payments, as well as long-term
incentive awards in the form of restricted stock under the Provident Financial
Services, Inc. 2003 Stock Award Plan and stock options under the Provident
Financial Services, Inc 2003 Stock Option Plan. The incentive payments, both
cash and long-term incentive awards, will be made based primarily on the
Company's financial performance in 2006 compared with targets relating to: (i)
earnings per share (weighted 50%); (ii) efficiency ratio (weighted 25%); and
(iii) total shareholder return relative to the performance of an identified peer
group (weighted 25%) (collectively, the "Corporate Targets"). Incentive payments
based on the Company's financial performance may be made if the Company meets or
exceeds 95% of the Corporate Targets (the "Threshold"). A portion of the
incentive payment will be based on the officer's performance against personal
goals and objectives, and may be made whether or not the Corporate Targets have
been met. For senior executive officers, 75% of the incentive payment that may
be made under the Plan will be based on the Company's financial performance and
25% will be based on the individual's performance.
Incentive payments will be a percentage of the officer's base salary. Using
2005 base salary levels and the current number of officers that could
participate (96 persons), the aggregate cash incentive payments that may be made
for 2006 would range from approximately $998,000 at the Threshold level up to a
maximum of approximately $4.0 million and the estimated value of the long-term
awards would range from approximately $108,000 at the Threshold level up to a
maximum of approximately $478,000.
Item 9.01. Financial Statements and Exhibits
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(a) Financial Statements of Businesses Acquired. Not applicable
(b) Pro Forma Financial Information. Not Applicable
(c) Shell company transactions. Not Applicable
(d) Exhibits. Not applicable
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
PROVIDENT FINANCIAL SERVICES, INC.
DATE: March 27, 2006 By: /s/ Paul M. Pantozzi
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Paul M. Pantozzi
Chairman and Chief Executive Officer