Form 4: Trico Bancshares CEO Richard Smith Reports Stock Transactions

Richard Smith, CEO and President of Trico Bancshares, reports the vesting of performance-based stock units and related tax liability transactions.

Summary

• On April 9, 2024, Richard Smith, CEO and President of Trico Bancshares, reported transactions involving common stock and performance stock units (PSUs).
• 8,851 shares of common stock were acquired upon the vesting of performance-based stock units.
• 5,173 shares were disposed of to cover tax liabilities at a price of $34.49 per share.
• The reported transactions did not involve any actual buying or selling of shares within the ESOP, by spouse, or by the ESOP Trustee; the report was intended only to reflect the number of shares beneficially owned.
• The PSUs vested at 105.08% of the target number based on Trico Bancshares' total stockholder return relative to the KBW Regional Banking Index.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The vesting of PSUs indicates the achievement of performance goals, but the subsequent tax liability reduces the CEO's holdings. Overall, it reflects standard executive compensation practices.

Positives

• The vesting of performance-based stock units suggests that the company has met certain performance targets related to stockholder return relative to the KBW Regional Banking Index.
• The PSUs vested at 105.08% of the target number.

Negatives

• 5,173 shares were disposed of to cover tax liabilities, which reduces the CEO's direct holdings.

Industry Context

This Form 4 filing is a routine disclosure related to executive compensation and stock ownership. It provides transparency into the transactions of company insiders and their alignment with shareholder interests. The vesting of PSUs based on relative performance to the KBW Regional Banking Index is a common practice in the banking industry.

Comparison to Industry Standards

• Performance-based equity compensation is a standard practice among publicly traded companies, particularly in the financial sector.
• The use of the KBW Regional Banking Index as a benchmark for performance is common among regional banks.
• The vesting percentage of 105.08% suggests that Trico Bancshares' performance was slightly above the average of its peers in the KBW Regional Banking Index during the performance period.

Stakeholder Impact

• The vesting of PSUs aligns management's interests with those of shareholders by incentivizing performance relative to peers.
• The disclosure provides transparency to shareholders regarding executive compensation and stock ownership.

Key Dates