Form 4: Associated Banc-Corp Grants Equity to New EVP, CHRO Julio Manso as Part of Compensation Package

Associated Banc-Corp has disclosed equity grants to its Executive Vice President and Chief Human Resources Officer, Julio Manso, as part of his employment compensation.

Summary

• Julio Manso, the Executive Vice President and Chief Human Resources Officer of Associated Banc-Corp (ASB), reported the acquisition of common stock.
• On June 2, 2025, Mr. Manso acquired 8,522 shares of common stock as a sign-on grant, valued at $23.47 per share.
• Additionally, on the same date, he acquired 4,315 shares of common stock, representing the 25% time-based portion of his Long-Term Incentive Performance Plan (LTIPP) shares, also valued at $23.47 per share.
• The share price of $23.47 was determined based on the average closing prices of the company's common stock for the ten trading days preceding his June 2, 2025 starting date, which ranged from $23.00 to $24.28.
• Following these transactions, Mr. Manso beneficially owns a total of 12,837 shares of Associated Banc-Corp common stock.
• The sign-on grant shares will vest in three equal annual installments on the 1st, 2nd, and 3rd anniversary dates after his hire date.
• The LTIPP shares will vest in four equal annual installments beginning February 8, 2026.
• A Power of Attorney was executed by Julio Manso on April 19, 2025, authorizing specific individuals to handle his SEC filings, including Forms 3, 4, 5, and 144.

Sentiment

Score: 7

Explanation: The document reflects a standard and expected executive compensation event, indicating stability and the onboarding of a new key executive. It is mildly positive as it signifies investment in leadership and aligns executive interests with shareholders, without indicating any negative operational or financial issues.

Positives

• The equity grants align the interests of a key executive, Julio Manso, with those of the shareholders, as his compensation is tied to the company's stock performance.
• The sign-on grant and LTIPP shares serve as an incentive for executive retention and long-term commitment to Associated Banc-Corp.
• The structured vesting schedules encourage sustained performance and strategic contributions from the EVP, CHRO over several years.

Negatives

• The issuance of new shares for compensation, while common, results in a minor dilution of existing shareholder equity.

Risks

• The value of the granted shares to the reporting person is subject to fluctuations in Associated Banc-Corp's common stock price.
• Future changes in company performance or market conditions could impact the perceived value and effectiveness of this equity compensation.

Future Outlook

The equity grants to Julio Manso, with their multi-year vesting schedules, indicate a long-term commitment from the company to its new EVP, CHRO and suggest an expectation of his continued contributions to the company's performance.

Management Comments

• The filing indicates that the number of shares for the sign-on grant was determined based on the average closing prices of the Company's common stock for the ten trading days preceding his June 2, 2025 starting date.
• The reporting person undertakes to provide full information regarding the share prices upon request to Associated Banc-Corp, its security holders, or the SEC staff.

Industry Context

The granting of equity as part of executive compensation, including sign-on bonuses and long-term incentive plans, is a standard practice across the financial services industry. This approach aims to align executive interests with shareholder value creation and is a common component of competitive compensation packages for senior leadership.

Comparison to Industry Standards

• While specific comparable companies or projects are not detailed in the filing, the structure of equity grants with multi-year vesting is a common compensation mechanism for executive talent in the banking and financial services sector.
• The use of a 10-day average closing price for determining grant value is a standard methodology to mitigate short-term stock price volatility around the grant date, consistent with practices observed in other publicly traded financial institutions.

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders: Experience minor dilution from the issuance of new shares, but benefit from the alignment of executive interests with long-term company performance.
• Employees: The appointment of a new EVP, CHRO signifies changes in human resources leadership and strategy.
• Management: The new EVP, CHRO, Julio Manso, is now a key member of the executive team, with his compensation tied to the company's stock performance.

Next Steps

• The sign-on grant shares will vest in three equal annual installments on the 1st, 2nd, and 3rd anniversary dates after Julio Manso's hire date.
• The LTIPP shares will vest in four equal annual installments beginning February 8, 2026.

Key Dates

Keywords

Associated Banc-Corp, ASB, Form 4, Equity Grant, Stock Compensation, Executive Compensation, Julio Manso, EVP CHRO, Insider Transaction, Long-Term Incentive Plan, Sign-on Bonus