Form 4: Trico Bancshares EVP Peter Wiese Reports Stock Unit Grants

EVP and CFO of Trico Bancshares, Peter Wiese, reports the acquisition of restricted and performance-based stock units.

Summary

• Peter Wiese, EVP and Chief Financial Officer of Trico Bancshares, filed a Form 4 on March 31, 2025.
• The report details the grant of restricted stock units (RSUs) and performance stock units (PSUs) on March 28, 2025.
• 4,830 RSUs were granted, vesting in 33.33% increments annually over three years.
• Cash dividends on RSUs are reinvested in Trico Bancshares common stock at fair market value on the dividend payment date.
• The per-unit value on the grant date was $42.07, based on the 30-day average closing price of Trico Bancshares common stock.
• An additional 4,830 PSUs were granted, cliff vesting after three years, with the number of shares vesting between 0% and 150% of the target based on Trico Bancshares' total stockholder return relative to the KBW Regional Banking Index.
• Following the reported transactions, Wiese directly owns 15,360 RSUs and 20,100 PSUs.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The grant of stock units is a standard practice and aligns management interests with shareholders. The performance-based component adds a layer of incentive for strong company performance.

Positives

• The grant of RSUs and PSUs aligns executive compensation with shareholder value and long-term company performance.
• Reinvestment of cash dividends from RSUs into company stock further aligns executive interests with shareholders.

Risks

• The vesting of PSUs is contingent on Trico Bancshares' performance relative to the KBW Regional Banking Index, which introduces market-related risk.
• The actual number of shares vesting from the PSU grant could range from 0% to 150% of the target, depending on performance.

Future Outlook

The vesting of the PSUs is dependent on the company's total stockholder return relative to the KBW Regional Banking Index over the next three years.

Industry Context

Granting stock-based compensation is a common practice in the banking industry to incentivize executives and align their interests with those of shareholders. The use of performance-based units tied to a regional banking index is also a standard approach to benchmark performance against peers.

Comparison to Industry Standards

• Many regional banks use a combination of time-based and performance-based equity awards to incentivize executives.
• Comparing Trico Bancshares' performance metrics against peers in the KBW Regional Banking Index is a common industry practice.
• Companies like First Republic Bank (before its acquisition) and PacWest Bancorp also used similar performance metrics for executive compensation.

Stakeholder Impact

• Shareholders may view the stock unit grants positively as they align executive compensation with company performance.
• Employees may be motivated by the potential for improved company performance due to incentivized executives.

Key Dates

Keywords

Trico Bancshares, Peter Wiese, Restricted Stock Units, Performance Stock Units, RSU, PSU, Form 4, Executive Compensation, KBW Regional Banking Index