Form 4: First BanCorp EVP, General Counsel Sara Alvarez-Cabrero Reports Changes in Beneficial Ownership

Sara Alvarez-Cabrero, EVP and General Counsel of First BanCorp, reports acquisition of restricted stock and performance share units, as well as shares withheld for taxes.

Summary

• Sara Alvarez-Cabrero, EVP and General Counsel of First BanCorp, filed a Form 4 detailing changes in beneficial ownership.
• On March 21, 2024, she acquired 8,745 shares of restricted stock at $17.35 per share and 8,744 performance share units.
• These shares of restricted stock were issued under the First BanCorp Omnibus Incentive Plan and will vest over a three-year period, with 50% vesting on March 21, 2026, and the remaining 50% on March 21, 2027.
• The performance share units vest based on the achievement of performance goals, with each unit representing a contingent right to receive one share of FBP common stock.
• On March 24, 2024, 2,018 shares were withheld at $16.86 per share to cover taxes related to restricted stock that vested on the same day pursuant to the terms of the long-term incentive award made on March 24, 2022.
• Following these transactions, Alvarez-Cabrero directly owns 61,527 shares of First BanCorp common stock and 30,298 performance share units.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing detailing executive compensation. It doesn't contain information that would significantly impact investor sentiment positively or negatively.

Positives

• The acquisition of restricted stock and performance share units aligns Alvarez-Cabrero's interests with the long-term success of First BanCorp.
• The vesting schedule of the restricted stock encourages continued service and commitment to the company.

Future Outlook

The restricted stock vests over a three-year period, and the performance share units vest based on the achievement of performance goals, indicating a long-term incentive structure.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies as part of executive compensation packages. It provides transparency into the ownership stake of key executives.

Comparison to Industry Standards

• Executive compensation packages often include a mix of salary, stock options, restricted stock, and performance-based incentives.
• The vesting schedules and performance goals are designed to align executive interests with shareholder value.
• Similar practices are observed at comparable financial institutions such as Popular, Inc. and OFG Bancorp.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they reflect standard executive compensation practices.
• Employees may be indirectly affected by the performance goals associated with the performance share units, as these goals can influence company strategy and operations.

Key Dates