Form 4: First BanCorp EVP and CFO, Orlando Berges Gonzalez, Reports Acquisition of Restricted Stock and Performance Share Units

Orlando Berges Gonzalez, EVP and CFO of First BanCorp, reports the acquisition of restricted stock and performance share units.

Summary

• On March 19, 2025, Orlando Berges Gonzalez, the EVP and CFO of First BanCorp, acquired 14,714 shares of First BanCorp common stock at a price of $18.35 per share.
• These shares were issued as restricted stock under the First BanCorp Omnibus Incentive Plan and will vest over a three-year period, with 50% vesting on March 19, 2027, and the remaining 50% vesting on March 19, 2028.
• Additionally, Mr. Gonzalez acquired 14,713 Performance Share Units, which vest based on the achievement of performance goals.
• Each Performance Share Unit represents a contingent right to receive one share of FBP common stock, with payouts ranging from 50% for threshold-level performance to 150% for maximum-level performance.
• Following these transactions, Mr. Gonzalez directly owns 287,947 shares of First BanCorp common stock and 68,986 Performance Share Units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects standard executive compensation practices, aligning management interests with shareholders through equity ownership and performance-based incentives.

Positives

• The acquisition of restricted stock and performance share units aligns the executive's interests with those of the shareholders.
• The vesting schedule of the restricted stock encourages long-term commitment from the executive.
• The performance-based vesting of the Performance Share Units incentivizes the executive to achieve specific performance goals.

Future Outlook

The document does not contain specific forward-looking statements, but the vesting schedules of the restricted stock and performance share units suggest an expectation of continued employment and performance by the executive.

Industry Context

This type of equity compensation is common in the financial services industry to align executive compensation with shareholder value and company performance. Banks often use a mix of time-based and performance-based equity awards.

Comparison to Industry Standards

• Equity compensation practices vary across the financial industry, but it's common for executives at banks like First BanCorp to receive a mix of restricted stock and performance-based equity.
• Companies like Popular, Inc. (BPOP) and OFG Bancorp (OFG), which are regional banks operating in similar markets, also utilize equity-based compensation to incentivize their executives.
• The specific vesting schedules and performance metrics can differ, but the overall structure is consistent with industry norms.

Stakeholder Impact

• Shareholders may view the equity grants positively as they align executive interests with company performance.
• Employees may see this as a standard part of executive compensation.
• The grants have no immediate impact on customers, suppliers, or creditors.

Key Dates

Keywords

First BanCorp, FBP, Orlando Berges Gonzalez, EVP, CFO, restricted stock, performance share units, beneficial ownership, Form 4