Form 4: Catalyst Bancorp Director Kirk Kleiser Reports Significant Equity and Option Grants

Catalyst Bancorp, Inc. Director Kirk E. Kleiser reported the acquisition of 1,058 shares of common stock and 2,645 stock options as part of compensation plans, increasing his total beneficial ownership.

Summary

• Kirk E. Kleiser, a Director of Catalyst Bancorp, Inc. (CLST), reported changes in his beneficial ownership of company securities.
• On June 10, 2025, Mr. Kleiser acquired 1,058 shares of common stock at a price of $0, granted under the Issuer's 2022 Recognition and Retention Plan and Trust Agreement. These shares will vest 20% per year starting June 10, 2026.
• He also acquired 2,645 stock options (right to buy) at an exercise price of $12.08 per share, which will vest 20% per year commencing June 10, 2026, and expire on June 10, 2035.
• The reported transactions were made pursuant to a Rule 10b5-1(c) contract, instruction, or written plan.
• Following these transactions, Mr. Kleiser directly beneficially owns 24,522 shares of common stock, which includes 5,080 unvested shares from a previous grant that began vesting on September 1, 2023.
• His indirect beneficial ownership includes 12,799 shares via an IRA, 1,000 shares via K&G On the GEAUX LLC, 2,800 shares via Spouse in IRA, 5,000 shares via K Kleiser LLC, and 4,400 shares via Kleiser Enterprises, Inc.
• He also directly holds 21,160 stock options with an exercise price of $13.30, which began vesting 20% per year on September 1, 2023, and expire on September 1, 2032.

Sentiment

Score: 7

Explanation: The filing indicates a positive event for the director (receipt of compensation) and suggests continued alignment of management interests with shareholders through equity grants and options. It's a routine compensation disclosure, not indicative of major operational changes, but generally positive for insider alignment.

Positives

• Director Kirk E. Kleiser received a grant of 1,058 shares of common stock, aligning his interests with shareholders.
• Mr. Kleiser was granted 2,645 stock options, providing an incentive for future company performance.
• The transactions were conducted under a Rule 10b5-1 plan, indicating a pre-arranged trading strategy.
• The grants are part of the Issuer's 2022 Recognition and Retention Plan, suggesting a structured approach to executive compensation and retention.

Risks

• The value of the granted shares and options is subject to the future performance of Catalyst Bancorp, Inc.'s stock price.
• Vesting schedules mean the full benefit of the grants is contingent on continued employment and performance over several years.

Future Outlook

The grants of shares and stock options with multi-year vesting schedules indicate a long-term incentive for the director, aligning future compensation with the company's performance and retention goals through at least June 2035.

Management Comments

• "Represents the grant of shares pursuant to the Issuer's 2022 Recognition and Retention Plan and Trust Agreement that vest 20% per year commencing on June 10, 2026."
• "The options vest at a rate of 20% per year commencing on June 10, 2026."

Industry Context

This Form 4 filing reflects a standard practice in corporate governance where directors and executives receive equity-based compensation, such as stock grants and options, to align their interests with long-term shareholder value creation. Such compensation is common across the financial services industry, particularly for community banks like Catalyst Bancorp, Inc., to attract and retain key talent.

Comparison to Industry Standards

• The grant of equity and options to a director is a common compensation practice in the banking and financial services sector.
• While specific values vary by company size and executive role, the use of multi-year vesting schedules (20% per year) is a standard mechanism to promote long-term retention and performance alignment, comparable to practices seen in regional banks and financial institutions of similar market capitalization.

Stakeholder Impact

• Shareholders: The grants align the director's interests with shareholders, as the value of his compensation is tied to the company's stock performance.
• Employees: The grants are part of a "Recognition and Retention Plan," which could signal a broader commitment to employee incentives, though this specific filing is for a director.

Next Steps

• Continued vesting of granted shares and options according to their respective schedules (20% per year commencing June 10, 2026, and September 1, 2023).
• Future Form 4 filings will report any subsequent changes in beneficial ownership by Kirk E. Kleiser.

Key Dates

Keywords

Catalyst Bancorp, CLST, SEC Form 4, Insider Trading, Beneficial Ownership, Stock Grant, Stock Options, Executive Compensation, Director, Equity Plan, Rule 10b5-1