Form 4: Central Pacific Financial Corp: CFO David Morimoto Reports Stock Transactions Following Vesting of Restricted Stock Units
SEC Form 4 Filing
David Morimoto, CFO of Central Pacific Financial Corp, reports the acquisition and disposal of common stock related to vesting of restricted stock units and performance stock units, with shares used to cover tax obligations.
Summary
- David Morimoto, the Senior EVP and CFO of Central Pacific Financial Corp, filed a Form 4 detailing changes in his beneficial ownership of the company's stock on February 20, 2025.
- The reported transactions include the acquisition of common stock through the vesting of Restricted Stock Units (RSUs) and Performance Stock Units (PSUs).
- A significant portion of the newly vested shares were then disposed of to cover tax obligations associated with the vesting.
- The transactions occurred on February 18, 2025, with prices at $29.69 for shares disposed of to cover taxes.
- Following these transactions, Morimoto directly owns various amounts of common stock acquired through previous grants.
Sentiment
Score: 6
Explanation: The sentiment is neutral. The document simply reports stock transactions related to vesting and tax obligations, which are routine events. There is no indication of positive or negative sentiment towards the company's prospects.
Positives
- The vesting of RSUs and PSUs indicates that Morimoto is accumulating more shares in the company.
Negatives
- The disposal of shares to cover taxes reduces Morimoto's overall holdings, although this is a common practice.
Risks
- There are no specific risks highlighted in this document, as it primarily reports stock transactions.
Industry Context
Form 4 filings are standard practice and provide transparency into the trading activities of company insiders, allowing investors to gauge management's sentiment and alignment with shareholder interests.
Comparison to Industry Standards
- Tracking insider transactions is a common practice in financial analysis.
- Comparing the vesting schedules and equity grants to those of peer companies like Bank of Hawaii Corporation (BOH) or First Hawaiian, Inc. (FHB) can provide context on Central Pacific Financial Corp's compensation practices.
- The tax coverage strategy is standard practice among public companies.
Stakeholder Impact
- Shareholders can use this information to understand insider activity and assess management's alignment with their interests.
- Employees holding similar equity grants may be interested in the vesting schedules and tax implications.
Key Dates
| Date | Description |
|---|---|
| 2011-05-02 | RSU time-based grant 5/2/11. Outstanding balance as of 7/1/15. 3,710 shares to vest on 5/2/16 |
| 2014-05-15 | RSU time-based grant 5/15/14. Outstanding balance as of 7/1/15. Vesting schedule: 1,000-5/15/16; 1,000-5/15/17; 1,000-5/15/18; 1,000-5/15/19 |
| 2015-02-15 | RSU time-based grant 2/15/15. Vesting schedule: 243-2/15/16; 242-2/15/17; 243-2/15/18 |
| 2015-02-17 | 2/17/15 PSU Grant. Shares to vest on 2/15/18, based on performance criteria results. |
| 2015-06-07 | Date of Power of Attorney execution by David Morimoto. |
| 2015-08-17 | RSU time-based grant 8/17/15, with 5-year vesting schedule, whereby shares to vest in equal increments over 5-years. |
| 2016-02-16 | 2/16/16 PSU Grant that cliff vests on 2/15/19 based on 2018 year-end performance results. Amount reported is actual number of shares that vested and were issued on 2/15/19. |
| 2017-02-15 | 2/15/17 PSU Grant that cliff vests on 2/18/20 based on 2019 year-end performance results. Amount reported is actual number of shares that vested and were issued on 2/18/20. |
| 2018-02-15 | 2/15/18 PSU Grant that cliff vests on 2/16/21 based on 2020 year-end performance results/approval. Amount reported is actual number of shares that vested and were issued on 2/16/21. |
| 2018-02-15 | 2/15/18 RSU time-based grant. Shares vest evenly over 3 years. |
| 2019-02-15 | 2/15/19 PSU Grant that cliff vests on 2/15/22 based on 2021 year-end performance results/approval. Amount reported is actual number of shares that vested and were issued on 2/15/22. |
| 2019-02-15 | 2/15/19 RSU Time-Based Grant. Shares vest evenly over 3 years |
| 2020-02-18 | 2/18/20 RSU Time-Based Grant. Shares vest evenly over 3 years |
| 2020-05-15 | 5/15/20 RSU Time-Based Grant. Shares vest evenly over 3 years. |
| 2021-02-16 | 2/16/21 PSU Grant that cliff vests on 2/15/24 based on 2023 year-end performance results/approval. Amount reported is actual number of shares that vested and were issued on 2/15/24. |
| 2021-02-16 | 2/16/21 PSU Grant that cliff vests on 2/16/24 based on 2023 year-end performance results/approval. Amount reported is actual number of shares that vested and were issued on 2/16/24. |
| 2021-02-16 | 2/16/21 RSU Time-Based Grant. Shares vest evenly over 3 years. |
| 2022-02-15 | 2/15/22 PSU Grant that cliff vests on 2/15/25 based on 2024 year-end performance results/approval. Amount reported is actual number of shares that vested and were issued on 2/18/25. |
| 2022-02-15 | 2/15/22 PSU Grant that cliff vests on 2/15/25 based on 2024 year-end performance results/approval. Amount reported is actual number of shares that vested and were issued on 2/18/25. |
| 2022-02-15 | 2/15/22 RSU Time-Based Grant. Shares vest evenly over 3 years |
| 2023-02-15 | 2/15/23 RSU Time-Based Grant. Shares vest evenly over 3 years |
| 2024-02-15 | 2/15/24 RSU Grant. Shares vest evenly over 3 years. |
| 2025-02-18 | Date of reported transactions: acquisition and disposal of shares due to vesting of RSUs and PSUs. |
| 2025-02-20 | Date of Form 4 filing. |
Keywords
Form 4, Beneficial Ownership, David Morimoto, Central Pacific Financial Corp, CFO, Stock Transactions, RSU, PSU, Vesting, CPF
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