FIRST BANCORP. (NASDAQ:FBNC) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
5.02 (e) Compensatory Arrangements of Certain Officers
On March21, 2018, the Board of Directors (the “Board”) of First BanCorp (the “Corporation”) approved the following incentive awards for the Corporation’s Named Executive Officers (“NEOs”):
| 1) | A short-term cash incentive payout based on 2017 performance. Amounts were for the six-month period from July to December, during which the Corporation was no longer subject to the executive compensation restrictions under the TARP Capital Purchase Program. The Board approved the following payments based upon consideration of each NEO’s attainment of annual goals. The goals related to corporate profitability, asset quality and risk management objectives and individual goals, including an assessment of leadership and core competencies: |
|
NEOs |
%ofBaseSalary* | $Amount |
|
Aurelio Aleman, President and CEO |
39.65% | $380,234 |
|
Orlando Berges, Executive Vice President and CFO |
50.67% | $152,024 |
|
Calixto Garcia-Velez, Executive Vice President |
24.06% | $132,334 |
|
Cassan Pancham, Executive Vice President |
17.53% | $78,890 |
|
Donald Kafka, Executive Vice President and COO |
25.56% | $140,607 |
| * | 2018 base salary is the same as 2017 base salary. |
| 2) | A long-term equity incentive award granted in the form of performance shares and restricted stock. The aggregate value of the performance shares and restricted stock was determined based upon an assessment of the achievement by the NEOs of their individual goals for the prior year. The annual award was granted in the following proportions: |
| • | 60% granted in performance-based shares, which vest based on the achievement of a pre-established tangible book value goal at the end of a three-year performance period (e.g., 2018 – 2020). Participants may earn zero to 150% of their targeted award. |
| • | 40% granted in time-vested restricted stock, which vests 50% on the second anniversary of the grant date and the remaining 50% on the third anniversary. |
The equity grants approved by the Board are as follows:
| RestrictedStock | PerformanceShares | TotalGrantDateFairValue | |||||||
| NEOs | %ofBase Salary | $ Value |
%ofBase Salary |
$ Value |
%ofBase Salary |
$ Value | |||
|
Aurelio Alemán |
46.00% | $ | 441,140 | 69.00% | $ | 661,710 | 115.00% | $ | 1,102,850 |
|
Orlando Berges |
17.90% | $ | 107,320 | 26.80% | $ | 160,979 | 44.70% | $ | 268,299 |
|
Calixto García-Vélez |
15.20% | $ | 83,565 | 22.80% | $ | 125,347 | 38.00% | $ | 208,912 |
|
Cassan Pancham |
14.90% | $ | 66,915 | 22.30% | $ | 100,373 | 37.20% | $ | 167,288 |
|
Donald Kafka |
20.40% | $ | 112,310 | 30.60% | $ | 168,465 | 51.00% | $ | 280,775 |
About FIRST BANCORP. (NASDAQ:FBNC)
First Bancorp is the bank holding company for First Bank (the Bank). The Company’s principal activity is the ownership and operation of First Bank. The Company engages in a range of banking activities, including the acceptance of deposits and the making of loans. The Company offers credit cards, debit cards, letters of credit, safe deposit box rentals and electronic funds transfer services, including wire transfers. In addition, the Company offers Internet banking, mobile banking, cash management and bank-by-phone capabilities to its customers. The Company also offers a mobile check deposit feature for its mobile banking customers that allows them to deposit checks through their smartphone. The Company offers remote deposit capture for its business customers. The Company conducts business from approximately 90 branches. The Bank’s subsidiaries include First Bank Insurance Services, Inc. (First Bank Insurance) and First Troy SPE, LLC.