Form 4: Old Second Bancorp Executive Donald Pilmer Reports Share Acquisitions Through Benefit Plans

Donald Pilmer, an EVP at Old Second Bancorp, reported acquiring shares through the company's profit sharing and 401(k) plans, as well as holding shares directly and through a spouse's IRA.

Summary

• Donald Pilmer, an Executive Vice President at Old Second Bancorp, filed a Form 4 detailing changes in his beneficial ownership of the company's stock.
• The filing shows that Mr. Pilmer acquired 1 share through the Profit Sharing Plan and 13 shares through the 401-K plan, both allocated during the fourth quarter of 2024.
• These acquisitions were made at a price of $0, indicating they were likely allocations rather than purchases.
• Mr. Pilmer also holds 1,450 shares indirectly through his spouse's IRA, where he is listed as a beneficiary.
• Additionally, he directly owns 57,649 shares and 34,836 restricted stock units, some of which are time-based and some performance-based.
• The time-based restricted stock units vest after three years from the grant date, while the performance-based units vest based on approved performance metrics.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and insider transactions, which are generally neutral to positive. The acquisitions through benefit plans and the executive's holdings suggest confidence in the company.

Positives

• The acquisition of shares through the company's benefit plans indicates a continued investment in the company by the executive.
• The allocation of shares at $0 suggests these are part of employee benefits, aligning employee interests with company performance.
• The executive's significant direct holdings and restricted stock units demonstrate a long-term commitment to the company's success.

Industry Context

Form 4 filings are a standard part of regulatory compliance for executives and insiders of publicly traded companies, providing transparency into their transactions and holdings. This filing is typical for executives receiving stock-based compensation or participating in company benefit plans.

Comparison to Industry Standards

• Form 4 filings are a common practice across all publicly traded companies in the US, including financial institutions like Old Second Bancorp.
• The structure of stock-based compensation, including restricted stock units with time-based and performance-based vesting, is a standard practice in executive compensation packages across the financial industry.
• Companies like First Midwest Bancorp and Wintrust Financial Corporation also use similar compensation structures for their executives, as evidenced by their respective SEC filings.

Stakeholder Impact

• The filing provides transparency to shareholders regarding executive ownership and compensation.
• The allocation of shares through benefit plans may positively impact employee morale and alignment with company goals.

Key Dates

Keywords

Form 4, Beneficial Ownership, Old Second Bancorp, Stock Acquisition, Restricted Stock Units, Profit Sharing Plan, 401-K Plan, Executive Compensation