On September 14, 2026, First Interstate BancSystem, Inc. (the “Company”) and its wholly owned subsidiary First Interstate Bank executed an employment agreement with Mr. Jeff Lee. The agreement became effective on that date, formally appointing Mr. Lee as Executive Vice President and Chief Operations Officer for both the Company and the Bank. This appointment was previously announced in an 8-K filed on August 21, 2026.
The employment agreement outlines severance terms based on the reason for termination. If the Company or Bank terminates Mr. Lee’s employment without cause, or if he terminates for “good reason,” he is entitled to one year of severance. This amount equals one times his then “Base Salary” plus one times the average of his annual cash incentive compensation from the three years prior to termination. The severance is payable over 12 months, and he will receive continued insurance coverage for up to 12 months.
Specific provisions apply in the event of a “change in control.” If a termination without cause or resignation for “good reason” occurs within six months prior to or 18 months following a change in control, Mr. Lee is eligible for enhanced benefits. He would receive two times his Base Salary, two times his annual cash incentive at “target,” and a pro-rata portion of his target bonus for the calendar year of termination. This enhanced package is also payable over 12 months, with insurance coverage extended to 24 months.
The agreement includes a 12-month non-competition and non-solicitation restriction following termination. These restrictions extend to 18 months if the termination occurs within the specified window surrounding a change in control. The filing also notes that if severance payments would constitute an “excess parachute payment” under Section 280G of the Internal Revenue Code, the payment will be reduced to avoid the excise tax, or paid in full if that results in a greater after-tax benefit for Mr. Lee.
