Form 4: Central Pacific Financial Corp Director Acquires Additional Shares as Part of Deferred Compensation Plan

Director Earl E. Fry acquired 2,581 shares of Central Pacific Financial Corp (CPF) as part of the company's deferred compensation plan, bringing his total holdings to 10,882 shares.

Summary

• Director Earl E. Fry reported a transaction on May 15, 2025, related to the acquisition of Central Pacific Financial Corp (CPF) shares.
• The acquisition involved 2,581 shares acquired through the Director's Deferred Compensation Plan.
• These shares represent 2025 Board of Director fees issued in CPF shares, held as phantom stock.
• Each phantom stock is equivalent to one share of common stock and will be payable in cash upon termination of service.
• Following the transaction, Mr. Fry beneficially owns 10,882 shares of CPF.
• The 2025 Board fees were approved by the Board Compensation Committee in October 2024.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and expected process. The increased shareholding could be viewed positively, suggesting confidence from the director.

Positives

• Director's participation in the deferred compensation plan demonstrates alignment with the company's long-term performance.
• The acquisition increases the director's stake in the company, potentially signaling confidence in its future prospects.

Future Outlook

The shares of phantom stock become payable in cash after the Director's termination of service.

Industry Context

Directors receiving compensation in company stock is a common practice to align their interests with shareholders. Deferred compensation plans are also frequently used to retain key personnel.

Comparison to Industry Standards

• Comparing Central Pacific Financial Corp's director compensation structure to similar regional banks would provide a benchmark for assessing its competitiveness.
• Companies like Bank of Hawaii (BOH) and First Hawaiian, Inc. (FHB) could be considered for comparison in terms of director compensation and equity ownership.
• Analyzing the percentage of director compensation paid in stock versus cash across these peers would offer valuable insights.

Stakeholder Impact

• The transaction could have a slightly positive impact on shareholders by aligning director interests with company performance.
• Employees may view the director's increased stake as a sign of confidence in the company's future.

Key Dates

Keywords

Central Pacific Financial Corp, Director, Share Acquisition, Deferred Compensation, Phantom Stock, CPF, Form 4