Catalyst Bancorp, Inc. Announces CEO Employment Agreement

What Happened
Catalyst Bancorp, Inc. (through its subsidiary Catalyst Bank) announced a new employment agreement with Joseph B. Zanco, President and Chief Executive Officer, effective August 17, 2026. The agreement runs through August 17, 2029 (three years) and sets a base salary of $350,000, stock‑based award allocations, enhanced life insurance, and continued vesting of an existing supplemental benefit.

Key Details

• Term: August 17, 2026 to August 17, 2029; Board will review potential renewal before term expiration.
• Base salary: $350,000 (subject to Board discretion to increase).
• Equity: Bank will offer Zanco the maximum allocation allowed under stock‑based plans (currently 25% of the stock compensation pools).
• Benefits: $500,000 additional life insurance payable to spouse/beneficiary; continuation of a $750,000 supplemental benefit vesting over 15 years under his October 22, 2020 agreement.
• Termination/severance:
  • Termination for cause: no post‑termination compensation except vested amounts.
  • Involuntary termination (or resignation for good reason/material breach): lump sum equal to 12 months’ base salary + health coverage up to 12 months (subject to release).
  • Change‑in‑control (termination without cause or for good reason on/within 30 days after CIC): lump sum equal to 36 months’ base salary + health coverage up to 36 months.
  • Death: estate receives 12 weeks’ base salary and 12 weeks’ family health coverage.
• The full Employment Agreement is filed as an exhibit to the 8‑K.

Why It Matters
This agreement formalizes CEO Joseph Zanco’s leadership through at least August 2029 and ties compensation to cash salary, equity awards, and long‑term benefits aimed at retention. The potential severance payments (12–36 months of salary) and equity awards are material to investors because they represent financial obligations the bank may incur on termination or a change in control and could affect future cash flows and share dilution. The filing provides transparency on executive pay and governance for shareholders.