Form 4: Consumers Bancorp SVP, Chief Credit Officer Suzanne Mikes Acquires Restricted Stock Units

Suzanne Mikes, SVP, Chief Credit Officer of Consumers Bancorp Inc, reports the acquisition of restricted stock units based on performance and time-based vesting.

Summary

• On July 1, 2024, Suzanne Mikes, SVP, Chief Credit Officer of Consumers Bancorp Inc, acquired 2,190 Restricted Stock Units (RSUs).
• These performance-based RSUs will vest based on the achievement of identified performance measures for fiscal year 2025.
• Assuming continuous employment, additional time-based vesting will occur in equal 25% installments on June 30, 2026, 2027, and 2028.
• The reported amount represents the maximum shares payable at maximum performance; the Reporting Person could earn 0 50% of the amount reported depending on the level of performance achieved.

Sentiment

Score: 5

Explanation: Neutral sentiment as it is a standard disclosure of executive compensation.

Positives

• The vesting of RSUs is tied to performance metrics, aligning executive compensation with company goals.
• Time-based vesting encourages long-term commitment from the executive.

Risks

• The actual number of shares earned could be significantly lower than the reported amount if performance targets are not met.
• The executive must remain continuously employed to receive the time-based vesting installments.

Future Outlook

The executive's compensation is linked to the company's performance in fiscal year 2025, with continued vesting dependent on ongoing employment.

Industry Context

Granting RSUs is a common practice in the banking industry to incentivize executives and align their interests with those of shareholders.

Comparison to Industry Standards

• Many financial institutions use a mix of performance-based and time-based vesting for equity compensation.
• The specific performance metrics and vesting schedules vary depending on the company's size, strategy, and compensation philosophy.
• Comparing Consumers Bancorp's RSU grants to those of peer banks would provide a more detailed assessment of its compensation practices.

Stakeholder Impact

• Shareholders: Aligns executive compensation with company performance.
• Employees: Provides insight into executive compensation structure.
• Executive: Incentivizes performance and long-term commitment.

Key Dates