Form 4: Oak Valley Bancorp Executive Cathy Ghan Reports Changes in Beneficial Ownership

Cathy Ghan, EVP Commercial Real Estate at Oak Valley Bancorp, reports transactions involving common stock, including acquisitions through a 401k plan and restricted stock awards.

Summary

• Cathy Ghan, an executive at Oak Valley Bancorp, filed a Form 4 detailing changes in her beneficial ownership of the company's common stock.
• On December 31, 2023, Ghan acquired 1,052 shares through the company's 401k plan.
• On February 28, 2024, she acquired 5,000 shares of restricted stock and an additional 1,262 shares of restricted stock.
• Also on February 28, 2024, 91 and 75 shares were disposed of to cover tax liabilities related to restricted stock vesting.
• Following these transactions, Ghan directly owns 38,133 shares of Oak Valley Bancorp common stock.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and stock ownership adjustments, suggesting a neutral to slightly positive outlook due to the increased stake in the company.

Positives

• The acquisition of shares through the 401k plan and the award of restricted stock indicate confidence in the company's future performance.
• The vesting schedule of the restricted stock (20% annually from 2/28/2025 to 2/28/2029) incentivizes long-term commitment from the executive.

Negatives

• The disposal of shares to cover tax liabilities, while a normal occurrence, slightly reduces the executive's overall holdings.

Future Outlook

The executive's holdings will increase as the restricted stock vests over the next five years, contingent on continued employment.

Industry Context

Executive stock ownership is a common practice in the banking industry to align management's interests with those of shareholders. Restricted stock awards are a typical component of executive compensation packages.

Comparison to Industry Standards

• Executive compensation packages in regional banks like Oak Valley Bancorp typically include a mix of salary, bonus, and equity-based compensation.
• The vesting schedule of the restricted stock is fairly standard, aligning with industry norms for incentivizing long-term performance.
• Comparing Cathy Ghan's stock ownership to peers at similarly sized banks would provide a more detailed assessment of her stake in the company.

Stakeholder Impact

• The increased stock ownership by an executive can positively influence shareholder confidence.
• The vesting schedule of the restricted stock incentivizes the executive to contribute to the company's long-term success, benefiting shareholders and employees.

Key Dates