Form 4: Director John C. Gordon Acquires Phantom Stock Units in First US Bancshares, Inc.

Director John C. Gordon reports acquisition of phantom stock units in First US Bancshares, Inc. through a non-employee director deferred compensation plan.

Summary

• On September 30, 2024, John C. Gordon, a director of First US Bancshares, Inc. (FUSB), acquired 404.64 phantom stock units.
• These units were accrued under the First US Bancshares, Inc. Non-Employee Directors' Deferred Compensation Plan.
• The phantom stock units convert to common stock on a 1-for-1 basis and will be settled in common stock at the end of the deferral period.
• The price of the derivative security is $11.05.
• Mr. Gordon directly owns 24,310.58 shares of common stock following the reported transaction.
• The transaction also includes 106 shares attributable to quarterly dividends accrued under the deferred compensation plan.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The director's acquisition of phantom stock units suggests confidence in the company's future, but it's a routine transaction under a pre-existing plan.

Positives

• The acquisition of phantom stock units by a director signals confidence in the company's future performance.
• The deferred compensation plan aligns the interests of non-employee directors with those of shareholders.

Future Outlook

The phantom stock units will be settled in common stock at the end of the deferral period, indicating a future increase in the director's holdings.

Industry Context

Director compensation through equity-based plans is a common practice in the banking industry to align management's interests with those of shareholders. Deferred compensation plans are often used to incentivize long-term performance and retention.

Comparison to Industry Standards

• Equity compensation for directors is a standard practice across the financial services industry.
• Many regional banks use similar deferred compensation plans to attract and retain qualified board members.
• The specific amount of equity granted varies based on company size, performance, and individual director contributions.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns director interests with shareholder value.

Key Dates