Form 4: Catalyst Bancorp COO Receives Significant Equity and Option Grants Under Retention Plan

Catalyst Bancorp, Inc.'s Chief Operations Officer, Amanda B. Quebedeaux, was granted 2,000 shares of common stock and 4,000 stock options on June 10, 2025, as part of the company's 2022 Recognition and Retention Plan.

Summary

• Amanda B. Quebedeaux, Chief Operations Officer of Catalyst Bancorp, Inc. (CLST), acquired 2,000 shares of common stock on June 10, 2025, as a grant under the Issuer's 2022 Recognition and Retention Plan and Trust Agreement.
• These 2,000 granted shares will vest at a rate of 20% per year, commencing on June 10, 2026.
• Additionally, Ms. Quebedeaux was granted 4,000 stock options on June 10, 2025, with an exercise price of $12.08 per share.
• These 4,000 stock options will vest at a rate of 20% per year, commencing on June 10, 2026, and have an expiration date of June 10, 2035.
• Following these transactions, Ms. Quebedeaux directly beneficially owns 9,816 shares of common stock, which includes 5,080 unvested shares from a prior grant that began vesting on September 1, 2023.
• She also indirectly beneficially owns 3,204.8705 shares through the Employee Stock Ownership Plan (ESOP) as of December 31, 2024.
• Furthermore, she directly holds 21,160 stock options with an exercise price of $13.30, which began vesting at 20% per year on September 1, 2023, and expire on September 1, 2032.

Sentiment

Score: 7

Explanation: The document reports standard executive compensation through equity grants, which is generally a positive sign for executive retention and alignment with shareholder interests. There are no negative or concerning details within the filing.

Positives

• The grant of common stock and stock options to the Chief Operations Officer aligns her interests with long-term shareholder value.
• The awards are part of a "Recognition and Retention Plan," indicating the company's commitment to retaining key talent.
• The vesting schedules encourage long-term commitment from the executive.

Future Outlook

The document details equity grants with future vesting schedules, indicating a long-term incentive structure for the Chief Operations Officer, aligning her future performance with the company's long-term success.

Industry Context

This Form 4 filing reflects a standard practice in the financial services industry, where executive compensation often includes equity grants and stock options to incentivize long-term performance and align management interests with shareholder value. Such grants are common for publicly traded banks and financial institutions like Catalyst Bancorp, Inc., as part of their executive retention and compensation strategies.

Comparison to Industry Standards

• The equity and option grants to a Chief Operations Officer are consistent with typical executive compensation packages in the banking and financial services sector.
• The use of a "Recognition and Retention Plan" with multi-year vesting schedules is a widely adopted practice among publicly traded companies, including peers like regional banks or community financial institutions, to ensure executive alignment and retention.
• The exercise price of the new options ($12.08) and the prior options ($13.30) would typically be compared against the company's stock price at the time of grant to assess the 'in-the-money' or 'out-of-the-money' status, which is a common metric for evaluating option value in the industry.

Related Party Transactions

• The indirect beneficial ownership of 3,204.8705 shares through the Employee Stock Ownership Plan (ESOP) represents a standard employee benefit arrangement.

Stakeholder Impact

• Shareholders: The grants align executive incentives with shareholder value creation, potentially leading to better long-term performance. However, they also represent potential future dilution if options are exercised and shares vest.
• Employees: The existence of an ESOP and a Recognition and Retention Plan suggests a structured approach to employee incentives and retention, which can positively impact morale and productivity.

Next Steps

• Continued vesting of 2,000 common shares and 4,000 stock options at 20% per year commencing June 10, 2026.
• Continued vesting of 5,080 unvested shares and 21,160 stock options at 20% per year, which commenced September 1, 2023.

Key Dates

Recommendation

Keywords

Catalyst Bancorp, CLST, SEC Form 4, Insider Trading, Stock Grant, Stock Options, Equity Compensation, Executive Compensation, Chief Operations Officer, Amanda B. Quebedeaux, Employee Stock Ownership Plan, ESOP, Vesting Schedule