Form 4: First BanCorp CEO Receives Equity Awards

First BanCorp's President and CEO, Aurelio Aleman, reported the acquisition of restricted stock and performance share units, aligning executive incentives with long-term company performance.

Summary

• Aurelio Aleman, President and CEO of First BanCorp /PR/ (FBP), acquired 58,318 shares of common stock as restricted stock on March 19, 2026, at a price of $20.59 per share.
• These restricted shares will vest over a three-year period, with 50% vesting on March 19, 2028, and the remaining 50% vesting on March 19, 2029.
• On March 21, 2026, 12,693 shares of common stock were disposed of at $20.57 per share to cover taxes related to a restricted stock award that vested on that date.
• Aleman also acquired 58,318 Performance Share Units (PSUs) on March 19, 2026, which are contingent rights to receive FBP common stock based on the achievement of performance goals.
• The total beneficial ownership of common stock following these transactions is 1,130,475 shares.
• The total beneficial ownership of Performance Share Units is 177,115, comprising grants from March 21, 2024 (59,942 shares), March 19, 2025 (58,855 shares), and March 19, 2026 (58,318 shares).

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive development, as it signifies strong alignment between the CEO's incentives and the long-term success of First BanCorp, which is generally favorable for shareholders.

Positives

• The grant of restricted stock and Performance Share Units to the President and CEO aligns executive compensation with the long-term performance and shareholder interests of First BanCorp.
• Performance Share Units incentivize management to achieve specific company performance goals, potentially driving future value creation.

Negatives

• No inherently negative events are reported in this routine insider transaction filing; the disposition of shares was for tax withholding purposes, a standard practice for equity awards.

Risks

• The vesting of Performance Share Units is contingent upon the degree of achievement of performance goals, meaning the full award may not be realized if performance targets are not met.
• The value of the restricted stock and Performance Share Units is subject to the future market price of FBP common stock.

Future Outlook

The future outlook for Aurelio Aleman's compensation is tied to the company's performance and the passage of time, with restricted stock vesting in 2028 and 2029, and Performance Share Units vesting based on the achievement of specific performance goals over their respective performance periods.

Industry Context

StockSavvy.ai notes that the granting of restricted stock and performance share units is a common practice in executive compensation across the financial services industry. This structure aims to align the interests of top management with those of shareholders by tying a significant portion of their compensation to the company's long-term stock performance and operational achievements.

Comparison to Industry Standards

• Performance-based equity awards, such as Performance Share Units, are a standard component of executive compensation packages in the banking sector, similar to practices at peers like Popular, Inc. (BPOP) or OFG Bancorp (OFG).
• The multi-year vesting schedule for restricted stock is typical for retaining key executives and encouraging sustained performance, comparable to long-term incentive plans seen at regional banks globally.

Corporate Governance

Stakeholder Impact

• Shareholders: Potentially positive, as executive compensation is tied to company performance, encouraging management to drive shareholder value.
• Employees: No direct impact mentioned, but a strong company performance driven by executive incentives could indirectly benefit employees through overall company success.

Next Steps

• Vesting of 50% of restricted stock on March 19, 2028.
• Vesting of the remaining 50% of restricted stock on March 19, 2029.
• Evaluation of performance goals for Performance Share Units to determine final payout.

Key Dates

Keywords

First BanCorp, FBP, Aurelio Aleman, SEC Form 4, Insider Transaction, Restricted Stock, Performance Share Units, Executive Compensation, Equity Awards, Stock Vesting