Form 4: Trico Bancshares SVP Gregory Gehlmann Reports Stock Grants

Gregory Gehlmann, SVP and General Counsel of Trico Bancshares, reports the acquisition of performance-based restricted stock units and restricted stock units.

Summary

• Gregory Gehlmann, SVP and General Counsel of Trico Bancshares, filed a Form 4 on March 4, 2024.
• The report details the grant of performance-based restricted stock units (PSUs) and restricted stock units (RSUs) on March 1, 2024.
• 2,537 PSUs were granted, vesting after 3 years based on Trico Bancshares' total stockholder return relative to the KBW Regional Banking Index, with potential vesting between 0% and 150% of the target number of shares.
• An additional 2,537 RSUs were granted, vesting 33.3% per year over 3 years.
• 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.
• Cash dividends on RSUs are reinvested in shares of the issuer's common stock at fair market value on the date of dividend payment.
• Following the reported transactions, Gehlmann directly owns 8,732 performance stock units and 8,078 restricted stock units.

Sentiment

Score: 7

Explanation: The document reports standard executive compensation practices, which are generally viewed neutrally to positively as they align management and shareholder interests.

Positives

• The grant of PSUs and RSUs aligns management's interests with those of shareholders, incentivizing performance relative to the KBW Regional Banking Index.
• The vesting schedule of the RSUs (33.3% per year over 3 years) encourages long-term commitment from the executive.
• Reinvestment of cash dividends on RSUs into shares of Trico Bancshares' common stock further aligns the executive's interests with those of 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 industry-specific risks.
• The vesting of the PSUs is dependent on the executive's continued employment with the company.

Future Outlook

The executive's future compensation is tied to the performance of the company's stock relative to the KBW Regional Banking Index.

Industry Context

Stock grants 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.

Comparison to Industry Standards

• Comparing the vesting schedule and performance metrics of these grants to those of executives at comparable regional banks (e.g., First Republic Bank (before acquisition), Western Alliance Bancorporation, or PacWest Bancorp) would provide a benchmark for assessing the competitiveness and appropriateness of the compensation package.
• The use of the KBW Regional Banking Index as a performance benchmark is a common practice in the industry, reflecting a focus on relative performance within the sector.

Stakeholder Impact

• Shareholders may view the stock grants positively as they align management's interests with the company's performance.
• Employees may be motivated by the potential for improved company performance driven by incentivized executives.

Key Dates