Form 4: Lake Shore Bancorp Executive Werdein Sells Shares to Cover Tax Obligations

Jeffrey M. Werdein, EVP of Commercial Division at Lake Shore Bancorp, sold shares to cover tax liabilities related to vesting restricted stock.

Summary

• On April 23, 2025, Jeffrey M. Werdein, EVP Commercial Division of Lake Shore Bancorp, Inc., disposed of 223 shares of common stock to cover a tax liability.
• The shares were sold at a price of $14.46 per share.
• Following the transaction, Werdein directly owns 23,545 shares of common stock and indirectly owns 4,787 shares through an Employee Stock Ownership Plan (ESOP).
• The direct holdings include 3,014 shares of restricted stock vesting at 25% per year starting March 12, 2026, and 1,901 remaining shares of restricted stock granted on April 23, 2024, vesting in four equal annual installments.
• Werdein also holds options to buy 17,073 shares of common stock at an exercise price of $14.38, which are fully vested.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It reflects a routine transaction related to executive compensation and tax obligations. There's no indication of significant positive or negative implications for the company.

Positives

• The executive's continued holding of a significant number of shares and options indicates confidence in the company's future.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. This filing indicates a common practice of executives selling shares to cover tax obligations related to equity compensation.

Comparison to Industry Standards

• Executive compensation packages often include stock options and restricted stock to align management's interests with those of shareholders.
• The vesting schedules and terms of the options appear standard for executive compensation in the banking industry.
• Comparable companies such as Community Bank System, Inc. and Northwest Bancshares, Inc. also utilize similar equity-based compensation strategies for their executives.

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders, as it is a routine sale of shares by an executive to cover tax liabilities.

Key Dates

Keywords

Form 4, Insider Trading, LSBK, Lake Shore Bancorp, Executive Compensation, Stock Options, Restricted Stock, ESOP, Werdein