Form 4: Central Pacific Financial Corp Director Saedene Ota Acquires Shares as Part of Board Compensation

Director Saedene Ota acquired 3,348 shares of Central Pacific Financial Corp as part of her board compensation, according to a recent SEC Form 4 filing.

Summary

• Saedene Ota, a director of Central Pacific Financial Corp, acquired 3,348 shares of the company's common stock on May 14, 2024.
• The acquisition was part of her 2024 Board of Directors fees, covering the period from May 1, 2024, to April 30, 2025.
• The shares were issued at a price of $21.28 per share and are held in the Director's Deferred Compensation Plan as phantom stock.
• Each phantom stock is economically equivalent to one share of common stock and will be payable in cash after the director's termination of service.
• Following the transaction, Ms. Ota beneficially owns 11,233 shares of Central Pacific Financial Corp.
• The Board Compensation Committee approved the 2024 board fees in July 2023.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects a director increasing their stake in the company, which is generally seen as a good sign. The transaction is part of a pre-determined compensation plan.

Positives

• The acquisition of shares by a director demonstrates alignment with shareholder interests.
• The use of phantom stock in the Director's Deferred Compensation Plan can incentivize long-term performance.

Future Outlook

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

Industry Context

This type of transaction is common for directors receiving compensation in the form of company stock, aligning their interests with those of shareholders.

Comparison to Industry Standards

• Director compensation packages often include equity to align director and shareholder interests, similar to practices at Bank of Hawaii Corporation and First Hawaiian, Inc.
• The use of phantom stock is a common method for deferring compensation and linking it to the company's long-term performance, comparable to programs used by other regional banks.

Stakeholder Impact

• The transaction signals confidence from a director, which can positively influence shareholder sentiment.

Key Dates