Form 4: Live Oak Bancshares Director Patrick McHenry Receives Restricted Stock Unit Grant

Live Oak Bancshares, Inc. Director Patrick Timothy McHenry was granted 3,080 restricted stock units, aligning his interests with shareholders.

Summary

• Patrick Timothy McHenry, a Director of Live Oak Bancshares, Inc. (LOB), was granted 3,080 Restricted Stock Units (RSUs) on May 28, 2025.
• Each restricted stock unit represents a contingent right to receive one share of Live Oak Bancshares, Inc. voting common stock.
• The RSUs were acquired at a price of $0, which is typical for equity grants.
• Following this transaction, Mr. McHenry beneficially owns 3,080 restricted stock units directly.
• The restricted stock units are scheduled to vest on May 1, 2026.

Sentiment

Score: 7

Explanation: The grant of restricted stock units to a director is a positive development as it aligns the director's interests with shareholders, promoting long-term value creation. It is a routine compensation event.

Positives

• The grant of restricted stock units to a director helps align management's interests with those of the shareholders, as the value of the compensation is tied to the company's stock performance.
• Equity-based compensation is a standard practice for attracting and retaining qualified board members.

Future Outlook

The granted restricted stock units are set to vest on May 1, 2026, indicating a future date when the director will receive the underlying common stock, subject to continued service.

Industry Context

The granting of restricted stock units to directors is a common practice within the financial services industry and broader corporate governance, serving as a key component of non-cash compensation designed to incentivize long-term performance and align leadership with shareholder interests.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a form of director compensation is a widely adopted practice across various industries, including financial services, aligning with global benchmarks for executive and board remuneration.
• The grant at a $0 price is standard for equity awards that are contingent on future service or performance, reflecting a common compensation structure.

Stakeholder Impact

• Shareholders: The grant aligns the director's financial interests with those of the shareholders, potentially encouraging decisions that enhance long-term stock value.
• Employees: While not directly impacting general employees, such compensation practices can set a precedent for equity participation within the company's leadership.

Next Steps

• The restricted stock units are expected to vest on May 1, 2026, at which point the director will receive the underlying shares of Live Oak Bancshares, Inc. voting common stock.

Key Dates

Recommendation

Keywords

Live Oak Bancshares, LOB, Restricted Stock Units, RSU, Insider Transaction, SEC Form 4, Director Compensation, Equity Grant, Beneficial Ownership