Form 4: Trico Bancshares Executive Craig Carney Reports Stock Awards

EVP Craig Carney of Trico Bancshares reports the acquisition of performance-based and time-based restricted stock units.

Summary

• Craig Carney, EVP and Chief Credit Officer of Trico Bancshares, reported the acquisition of 4,027 Performance Stock Units (PSUs) and 4,027 Restricted Stock Units (RSUs) on March 1, 2024.
• The PSUs cliff vest after 3 years, with the number of shares vesting between 0% and 150% based on Trico Bancshares' total stockholder return relative to the KBW Regional Banking Index.
• The RSUs vest 33.3% per year over 3 years, and cash dividends on the RSUs are reinvested in shares of Trico Bancshares' common stock at fair market value.
• The per unit value on the grant date was $35.67, based on the 30-day average closing price of Trico Bancshares' common stock ending March 1, 2024.
• Following the reported transactions, Carney beneficially owns 13,917 PSUs and 12,923 RSUs.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice. The sentiment is neutral to slightly positive as it indicates ongoing investment in key personnel.

Positives

• The grant of PSUs aligns executive compensation with the company's performance relative to its peers in the KBW Regional Banking Index.
• The vesting schedule of the RSUs encourages long-term retention of the executive.
• Dividend reinvestment in RSUs further aligns the executive's interests with those of the shareholders.

Risks

• The value of the PSUs is contingent on Trico Bancshares' performance relative to the KBW Regional Banking Index, which is subject to market fluctuations and competitive pressures.
• The vesting of the RSUs is subject to the executive's continued employment with the company.

Future Outlook

The vesting of the PSUs is dependent on the company's future performance relative to the KBW Regional Banking Index over the next 3 years. The RSUs will vest over a 3-year period, contingent on continued employment.

Industry Context

Stock awards are a common form of executive compensation in the banking industry, used to align management's interests with those of shareholders and incentivize long-term performance. The use of performance-based units tied to a regional banking index is a typical approach to benchmarking performance against peers.

Comparison to Industry Standards

• Many regional banks use a mix of time-based and performance-based equity awards to compensate executives.
• The KBW Regional Banking Index is a common benchmark for measuring the performance of regional banks.
• Vesting schedules of 3 years for both PSUs and RSUs are fairly standard in the industry.
• Comparable companies like First Interstate BancSystem and Columbia Banking System also utilize similar equity compensation plans for their executives.

Stakeholder Impact

• Shareholders: The stock awards align executive interests with shareholder value.
• Employees: The awards may serve as a motivation for other employees.
• Executive: The awards provide additional compensation and incentives for performance.

Key Dates