Company: BANC-PF
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001169770-25-000015
Chunk: 58

Company: BANC OF CALIFORNIA, INC.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 58
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 including certain NEOs. The award was intended to incentivize and reward the creation of significant stockholder value, well beyond the performance expectations of our ongoing LTI program, without encouraging excessive risk-taking. This equity grant was in the form of 100% PSUs that will vest on the fourth anniversary of the grant date if the following two conditions are met:

– within four years after the grant date, the Company’s voting common stock reaches a price of $28.73 per share and maintains that price, based on the volume-weighted average price, for 20 consecutive trading days; and

– the executive remains in the service of the Company through the fourth anniversary of the grant date.

If both conditions are met, the PSUs will vest in full on the fourth anniversary of the grant date. If either condition is not met (except in the case of a change in control), the PSUs will be forfeited. The CNG Committee extensively vetted the design of the award with Meridian, its independent compensation consultant, to ensure the award terms were competitive and otherwise appropriate and that the potential financial impact of the awards, including dilution to existing stockholders, was far outweighed by the stockholder value that would need to be realized to enable vesting of the awards, thereby serving the best interests of all stockholders.

The CNG Committee and the Board believe the Stockholder Value Creation Award equity grant is a highly cost-effective means of further aligning the interests of management with the interests of the Company’s stockholders by incentivizing the creation of significant stockholder value and enabling management to share in that value creation. The CNG Committee and Board also believe that by both rewarding management for creating that value and including a four-year service requirement as a vesting condition, this performance-based equity grant greatly enhances the Company’s ability to retain top talent. In approving the Stockholder Value Creation Awards, the CNG Committee and Board considered the positive support of one of its largest stockholders, Warburg Pincus LLC, regarding the rigorous performance conditions of the award and associated sharing ratio with stockholders. Furthermore, the Company received unanimous support for the awards during its stockholder engagement discussions to date.

Under the terms of the award, achieving the target price of $28.73 more than doubles the share price at grant ($13.77) and represents a 109% increase. For the award to be earned, our leadership team would need to deliver more than $2.5 billion in stockholder value (excluding dividends). Based on the Stock