Form 4: Eastern Bankshares Executive VP Steven Antonakes Reports Changes in Beneficial Ownership

Executive VP Steven Louis Antonakes reports transactions involving Eastern Bankshares, Inc. stock, including the vesting of restricted stock units and performance-based awards.

Summary

• Steven Louis Antonakes, an Executive VP at Eastern Bankshares, Inc., filed a Form 4 detailing changes in his beneficial ownership of the company's stock.
• On March 3, 2025, Antonakes acquired 12,786 shares through the vesting of restricted stock units and 35,578 shares through the vesting of performance restricted stock units (PRSUs).
• He also disposed of 3,754 shares and 10,645 shares to cover tax obligations related to the vesting of these units.
• Following these transactions, Antonakes directly owns 61,418 shares of common stock and indirectly owns 7,558 shares through a 401(k) and 3,912 shares through an ESOP.
• He also holds 33,163 restricted stock units.
• The vesting of the PRSUs was based on the company's performance relative to the KBW Nasdaq Regional Banking Index, with the EPS Measure meeting the maximum payout threshold of 150% of target and the TSR Measure not meeting the minimum threshold.

Sentiment

Score: 6

Explanation: Neutral sentiment. While the EPS measure exceeded expectations, the TSR measure did not meet the minimum threshold. The transactions are routine and expected as part of the executive's compensation package.

Positives

• The EPS Measure performance met the maximum payout threshold of 150% of target, indicating strong earnings per share growth relative to the KBW Nasdaq Regional Banking Index.

Negatives

• The TSR Measure did not meet the minimum threshold, indicating underperformance in total shareholder return compared to the KBW Nasdaq Regional Banking Index.

Risks

• Future performance-based awards are subject to the company's performance relative to the KBW Nasdaq Regional Banking Index, which could be affected by various market and economic factors.

Future Outlook

Future vesting of restricted stock units and performance-based awards are contingent upon continued service and the company's performance relative to the KBW Nasdaq Regional Banking Index.

Industry Context

Form 4 filings are standard disclosures for corporate insiders and provide transparency into their transactions in company stock. The vesting of performance-based awards tied to industry benchmarks like the KBW Nasdaq Regional Banking Index is a common practice to align executive compensation with shareholder value.

Comparison to Industry Standards

• Many regional banks use similar performance metrics, such as EPS growth and TSR, relative to indices like the KBW Nasdaq Regional Banking Index, to determine executive compensation.
• Companies like Citizens Financial Group, KeyCorp, and M&T Bank also utilize performance-based equity awards tied to similar metrics.
• The specific payout thresholds and vesting schedules can vary, but the general approach of linking executive compensation to relative performance is widespread in the banking industry.

Stakeholder Impact

• The vesting of performance-based awards reflects the company's performance and impacts shareholder value.
• Executive compensation is aligned with company performance, potentially motivating management to improve results.

Key Dates