Form 4: Live Oak Bancshares Executive Renato Derraik Reports Acquisition of Restricted Stock Units

Renato Derraik, Chief Info./Digital Officer at Live Oak Bancshares, reports the acquisition of restricted stock units (RSUs) that will vest over several years.

Summary

• Renato Derraik, Chief Info./Digital Officer of Live Oak Bancshares, filed a Form 4 detailing changes in beneficial ownership.
• The report indicates the acquisition of 15,678 Restricted Stock Units (RSUs) on February 10, 2025.
• These RSUs vest in five pro rata annual installments starting February 10, 2026, contingent upon continuous service.
• Derraik also holds RSUs from previous grants that vest on different schedules: August 10, 2022 (50,000 RSUs), February 14, 2023 (4,740 RSUs), February 13, 2024 (71,692 RSUs), and February 12, 2025 (21,281 RSUs).
• Following the reported transaction, Derraik directly owns 37,444 shares of Voting Common Stock.
• He also holds a total of 163,391 RSUs.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The granting of RSUs is a common practice and suggests confidence in the company's future. The vesting schedule aligns executive interests with long-term performance.

Positives

• The acquisition of RSUs suggests confidence in the company's future performance from the perspective of the executive.
• The vesting schedule tied to continuous service aligns the executive's interests with the long-term success of the company.

Future Outlook

The vesting schedules of the RSUs indicate an expectation of continued service and contribution from the executive over the next several years.

Industry Context

Executive compensation through stock and RSU grants is a common practice in the banking industry to align management's interests with shareholder value.

Comparison to Industry Standards

• Comparing the vesting schedules and amounts of RSUs to similar roles at comparable banks (e.g., regional banks with a focus on small business lending) would provide a benchmark for assessing the competitiveness of Live Oak Bancshares' executive compensation.
• Companies like Customers Bancorp, or Bank OZK could be used as a comparison for executive compensation packages.

Stakeholder Impact

• Shareholders may view the RSU grant positively as it incentivizes the executive to focus on long-term value creation.
• Employees may see the grant as a sign of the company's commitment to its leadership team.

Key Dates

Keywords

Restricted Stock Units, RSUs, Form 4, Beneficial Ownership, Live Oak Bancshares, LOB, Derraik, Executive Compensation