Form 4: Trico Bancshares CEO Richard Smith Receives Stock Unit Grants

Richard Smith, CEO and President of Trico Bancshares, was granted restricted stock units and performance-based restricted stock units on March 28, 2025.

Summary

• Richard Smith, the CEO and President of Trico Bancshares, received grants of restricted stock units (RSUs) and performance-based restricted stock units (PSUs) on March 28, 2025.
• The RSU award consists of 11,074 units and vests in 33.33% increments annually over three years.
• Cash dividends on the RSUs are reinvested in Trico Bancshares' common stock at fair market value on the dividend payment date.
• The per-unit value of the RSUs on the grant date was $42.07, based on the 30-day average closing price of Trico Bancshares' common stock.
• The PSU award also consists of 11,074 units and cliff vests after three years, with the actual number of shares vesting ranging from 0% to 150% of the target based on Trico Bancshares' total stockholder return relative to the KBW Regional Banking Index.
• Following these transactions, Smith directly owns 35,186 shares of common stock and 46,547 performance stock units.

Sentiment

Score: 7

Explanation: The document is a standard SEC filing related to executive compensation. It's generally neutral, but the granting of stock units can be seen as a positive sign of confidence in the company's future performance.

Positives

• The grant of RSUs and PSUs aligns the CEO's interests with those of the shareholders, incentivizing performance and long-term value creation.
• The performance-based vesting of the PSUs further strengthens this alignment by tying a portion of the CEO's compensation to the company's relative performance within its industry.

Risks

• The actual value of the PSUs is uncertain and depends on Trico Bancshares' performance relative to the KBW Regional Banking Index.
• If the company underperforms its peers, the CEO may receive fewer shares than the target amount.

Future Outlook

The vesting of the RSUs and PSUs is contingent upon continued employment and, in the case of the PSUs, the company's performance relative to the KBW Regional Banking Index.

Industry Context

Granting stock-based compensation to executives is a common practice in the banking industry to align management's interests with those of shareholders and incentivize long-term value creation. The use of performance-based units, tied to relative performance against a benchmark index, is also a common feature of executive compensation plans in the financial sector.

Comparison to Industry Standards

• Many regional banks use a combination of time-based and performance-based equity awards in their executive compensation packages.
• The KBW Regional Banking Index is a common benchmark for measuring the performance of regional banks.
• Companies like First Republic Bank (before its acquisition) and PacWest Bancorp also used similar performance metrics in their executive compensation plans.

Stakeholder Impact

• Shareholders may view the grant of stock units as a positive sign, aligning management's interests with their own.
• Employees may see it as a sign of the company's commitment to its leadership.

Key Dates

Keywords

Trico Bancshares, Richard Smith, Restricted Stock Units, Performance Stock Units, Executive Compensation, Stock Options, Form 4, TCBK