4/A: RBB Bancorp CEO David Morris Amends Filing to Reflect Stock Unit Grants
SEC Filing (Form 4/A)
David Morris, CEO of RBB Bancorp, amended a previous filing to accurately report the grant of restricted stock units (RSUs) and performance stock units (PSUs) on March 20, 2024.
Summary
- This is an amended SEC Form 4 filing by David Morris, CEO of RBB Bancorp, regarding changes in his beneficial ownership.
- The amendment corrects a previous filing to accurately reflect the grant of 9,493 restricted stock units (RSUs) and a maximum of 14,240 performance stock units (PSUs) on March 20, 2024.
- Morris directly owns 37,723 shares of RBB Bancorp common stock.
- He also holds options to buy 9,000 shares of common stock at an exercise price of $20.55, vesting in equal annual installments from January 22, 2021.
- The RSUs vest in three equal annual installments from the grant dates in January 2022, January 2023, February 2024 and March 2024.
- The PSUs will vest at the end of a three-year period starting March 20, 2024, contingent on achieving performance goals and continued employment.
Sentiment
Score: 7
Explanation: The document is a routine regulatory filing. The sentiment is neutral to slightly positive as it reflects ongoing equity compensation for the CEO.
Future Outlook
The performance stock units (PSUs) will vest conditionally on the achievement of certain performance goals and an employment condition at the expiration of a three-year period beginning on 03/20/2024.
Management Comments
- David Morris was granted 9,493 restricted stock units (RSUs) and a maximum amount of 14,240 performance stock units (PSUs) on March 20, 2024.
Industry Context
This type of equity compensation is common for CEOs in publicly traded companies to align their interests with those of shareholders.
Comparison to Industry Standards
- Equity compensation packages for CEOs in regional banks like RBB Bancorp typically include a mix of stock options, restricted stock units, and performance-based units.
- The vesting schedules and performance metrics associated with these grants are often benchmarked against peer companies to ensure competitiveness and alignment with shareholder value creation.
- Comparing RBB Bancorp's equity compensation practices with those of similar-sized banks such as Cathay General Bancorp or East West Bancorp would provide a more detailed assessment of its alignment with industry standards.
Stakeholder Impact
- The equity grants align the CEO's interests with those of shareholders, incentivizing performance and long-term value creation.
- Employees may view the CEO's equity compensation as a sign of confidence in the company's future prospects.
Key Dates
| Date | Description |
|---|---|
| 01/22/2020 | Date of grant for options that vest in three equal annual installments beginning one year after this date. |
| 01/19/2022 | Date of grant for restricted stock units that vest in three equal annual installments beginning one year after this date. |
| 01/18/2023 | Date of grant for restricted stock units that vest in three equal annual installments beginning one year after this date. |
| 02/21/2024 | Date of grant for restricted stock units that vest in three equal annual installments beginning one year after this date. |
| 03/20/2024 | Date of grant for 9,493 restricted stock units (RSUs) and a maximum amount of 14,240 performance stock units (PSUs). |
| 03/22/2024 | Date of original filing that was amended. |
| 05/06/2024 | Date of the amended filing. |
| 01/22/2030 | Expiration date for options. |
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