Form 4: Pinnacle Financial Partners Executive J. Harvey White Reports Stock Transactions
SEC Filing Form 4
J. Harvey White, Chief Credit Officer of Pinnacle Financial Partners, reports acquisition and disposal of company stock related to performance unit vesting and tax withholding.
Summary
- J. Harvey White, Chief Credit Officer of Pinnacle Financial Partners Inc. (PNFP), filed a Form 4 detailing changes in beneficial ownership.
- On March 12, 2024, White acquired 592 shares of PNFP common stock at $0, resulting from the vesting of performance units.
- Also on March 12, 2024, White disposed of 145 shares at $82.22 to cover withholding taxes related to the vesting.
- Following these transactions, White directly owns 47,308 shares and indirectly owns 5,000 shares through an IRA.
- The performance units vested based on Pinnacle Financial Partners' performance against certain metrics compared to peers and the average NPA ratio at December 31, 2021, 2022 and 2023, as well as total shareholder return for the Company for the period from January 21, 2021 through January 20, 2024.
Sentiment
Score: 6
Explanation: The sentiment is neutral. The transactions are related to compensation and tax obligations, reflecting standard executive activity rather than a strong positive or negative outlook.
Positives
- The vesting of performance units indicates that Pinnacle Financial Partners met certain performance goals, which is a positive sign for the company's performance.
Industry Context
Executive stock transactions are common and are often related to compensation and performance-based incentives. Monitoring these transactions can provide insights into management's confidence in the company's future performance.
Comparison to Industry Standards
- Performance-based equity compensation is a common practice among financial institutions to align executive incentives with shareholder value.
- The specific metrics used for vesting, such as NPA ratio and total shareholder return, are typical indicators of bank performance and are often compared against peer institutions.
- Similar to other regional banks like Truist Financial or Regions Financial, Pinnacle uses a combination of financial and operational metrics to determine executive compensation.
Stakeholder Impact
- The vesting of performance units and subsequent stock transactions have a minor dilutive effect on existing shareholders.
- The transactions reflect the company's performance and its commitment to aligning executive compensation with shareholder value.
Key Dates
| Date | Description |
|---|---|
| 01/21/2021 | Reporting person was granted 545 performance units eligible to vest at target levels of performance. |
| 12/31/2021 | Date for measuring the average of the ratio of Pinnacle Bank's nonperforming assets to its loans plus other real estate owned (NPA ratio). |
| 12/31/2022 | Date for measuring the average of the ratio of Pinnacle Bank's nonperforming assets to its loans plus other real estate owned (NPA ratio). |
| 12/31/2023 | Date for measuring the average of the ratio of Pinnacle Bank's nonperforming assets to its loans plus other real estate owned (NPA ratio). |
| 01/20/2024 | End date for measuring total shareholder return for the Company for the period from January 21, 2021. |
| 03/12/2024 | Date of stock acquisition and disposal. |
| 03/14/2024 | Date of Form 4 filing. |
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