Form 4: Peapack Gladstone Financial Corp: Executive Smith Reports Changes in Beneficial Ownership

Gregory M. Smith, SEVP, President of Commercial Banking at Peapack Gladstone Financial Corp, reports changes in beneficial ownership of company stock due to tax withholding and grants of restricted stock units and phantom stock.

Summary

• Gregory M. Smith, a senior executive at Peapack Gladstone Financial Corp, filed a Form 4 detailing changes in his beneficial ownership of the company's stock on March 24, 2025.
• The changes include the withholding of 4,091 shares of common stock at $29.55 per share to satisfy tax obligations related to the settlement of restricted stock units.
• Smith also reported the acquisition of 4,922 restricted stock units that vest in three equal installments annually, and 7,383 restricted stock units that cliff vest on the third anniversary of the grant date subject to performance conditions.
• Additionally, the report includes holdings of phantom stock, with varying vesting schedules and performance conditions, totaling 12,459 shares.
• Smith directly owns 8,625.7213 shares of common stock, including shares received through dividend reinvestment.

Sentiment

Score: 6

Explanation: The document is neutral in tone, reporting factual information about changes in beneficial ownership. The granting of equity compensation is generally viewed positively, but the tax withholding is a neutral event.

Positives

• The granting of restricted stock units and phantom stock to a key executive suggests an incentive alignment with the company's long-term performance.
• The vesting schedules encourage continued service and achievement of performance goals.

Negatives

• The withholding of shares to cover tax obligations reduces the executive's direct ownership, although this is a standard practice.

Risks

• The performance-based vesting of some restricted stock units and phantom stock introduces uncertainty regarding the actual number of shares that will ultimately vest.
• Changes in tax laws could impact the value and attractiveness of equity-based compensation.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the stock ownership of company insiders. The granting of stock-based compensation is a common practice in the financial industry to attract and retain talent and align executive interests with shareholder value.

Comparison to Industry Standards

• Equity compensation practices vary across the financial industry.
• Companies like JP Morgan Chase, Goldman Sachs, and Morgan Stanley also utilize restricted stock units and performance-based equity awards to incentivize their executives.
• The vesting schedules and performance conditions are generally aligned with industry norms, aiming to reward long-term value creation.

Stakeholder Impact

• Shareholders are informed about changes in executive stock ownership.
• Employees may be impacted by the company's overall performance, which influences the vesting of performance-based equity awards.

Key Dates

Keywords

Form 4, beneficial ownership, restricted stock units, phantom stock, Peapack Gladstone Financial Corp, executive compensation, stock options, PGC, Gregory M. Smith