Company: FSBC
Filing Date: 2025-04-23
Form Type: 8-K
Source: 0001275168-25-000065
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Company: FIVE STAR BANCORP
Filing Date: 2025-04-23
Form: 8-K
Item: Item 5.02
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Item 5.02      Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers  

On April 17, 2025, the Board of Directors of Five Star Bancorp (the “ Company”) approved, based on the recommendation of its Compensation Committee, long term incentive awards under a new long-term incentive compensation program for the Company’s executive officers. The awards will take the form of performance-based restricted stock units (“ PSUs”) and service-based restricted stock units (“ RSUs”) and recipients will include the Company’s executive officers, including two of the named executive officers included in the Company’s proxy statement filed in connection with the annual meeting of shareholders to be held on May 15, 2025: Michael A. Rizzo, Executive Vice President and Chief Banking Officer, and Heather C. Luck, Executive Vice President and Chief Financial Officer. Mr. Rizzo and Ms. Luck will each be entitled to receive PSUs in the amount of $100,000 and RSUs in the amount of $100,000, with the amounts of PSUs and RSUs to be based on the share price on the date of grant, which is expected to be on or about May 1, 2025. The awards will be issued under the Five Star Bancorp 2021 Equity Incentive Plan.

The long-term incentive awards provide a variable pay opportunity through a combination of performance-based PSUs and service-based RSUs. The program is designed to reinforce the long-term alignment of the Company’s executives with the interests of our shareholders. The PSUs are intended to strengthen our pay-for-performance philosophy, while the service-based RSUs are granted to promote share ownership and executive retention.

Vesting of the PSUs is based on achievement of the Company’s three-year average return on average assets for the performance period ended December 31, 2027 relative to a peer group of publicly traded banks and bank holding companies utilizing the S& P Global Broad Market Index - Western Region. If the Company’s performance is at the 60th percentile, 70th percentile, and 80th percentile or higher, the recipient is entitled to receive 50%, 100%, and 150% of his or her target award grant, respectively. If achievement warrants and the recipient remains employed by the Company, the PSUs vest on the third anniversary of the grant date.

The RSUs vest in equal annual installments over five years on the anniversary of the grant date, as long