Form 4: ProAssurance Executive Vice President Jeffrey Lisenby Reports Stock Transactions Following RSU Vesting

Jeffrey Lisenby, Executive Vice President, Secretary & General Counsel of ProAssurance Corp, reports the vesting and subsequent transactions of Restricted Stock Units (RSUs) on March 6, 2024.

Summary

• On March 6, 2024, Jeffrey Lisenby, an Executive Vice President, Secretary & General Counsel at ProAssurance Corporation, reported transactions related to the vesting of Restricted Stock Units (RSUs).
• The RSUs vested on March 6, 2024, after ratification by the ProAssurance Corporation Board of Directors, and were priced at $12.36 per share based on the closing price on February 28, 2024.
• Lisenby acquired 8,126 shares and 3,980 shares of common stock through the vesting of RSUs.
• Simultaneously, 5,409 shares were disposed of to cover tax obligations related to the RSU vesting.
• Following these transactions, Lisenby directly owns 76,621 shares of ProAssurance common stock.
• The RSUs are part of the ProAssurance Corporation 2014 Equity Incentive Compensation Plan.
• Vesting of the RSUs is contingent upon continuous employment with ProAssurance, with accelerated vesting possible under certain conditions such as death, disability, or 'Good Reason' termination.

Sentiment

Score: 6

Explanation: Neutral sentiment as it reflects routine executive compensation activity.

Positives

• The vesting of RSUs aligns executive compensation with company performance and incentivizes continued employment.

Future Outlook

The remaining RSUs will vest in the future, contingent upon continued employment, as per the terms of the ProAssurance Corporation 2014 Equity Incentive Compensation Plan.

Industry Context

Executive compensation through equity grants is a common practice in the insurance industry to align management interests with shareholder value.

Comparison to Industry Standards

• Equity compensation is a standard practice across publicly traded companies, including ProAssurance's competitors in the insurance sector.
• Companies like The Doctors Company and Medical Protective also utilize equity-based compensation to incentivize their executives.
• The vesting schedules and terms of ProAssurance's RSU grants are likely comparable to those offered by similar companies to retain key personnel.

Stakeholder Impact

• The RSU vesting impacts shareholders by potentially diluting equity, although it also incentivizes management to improve company performance.
• Employees, particularly the executive, are impacted through compensation and incentives.

Key Dates