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SAN JUAN, Puerto Rico – First BanCorp (NYSE:FBP), the $3.17 billion market cap bank holding company headquartered in Puerto Rico, announced adjustments to its executive compensation structure following a review by its Board of Directors. The company, which maintains a healthy 19% return on equity and trades at a P/E ratio of 10.73, detailed in a recent SEC filing changes affecting the remuneration of its Chief Executive Officer (CEO), Aurelio Alemán.
Effective April 1, 2025, Alemán’s annual base salary will see a 3.5% increase from $1,080,000 to $1,117,800. This decision comes as part of the Board’s annual competitive review of executive compensation, with guidance from independent compensation consultant Pearl Meyer & Partners LLC. The Board also approved alterations to the short-term and long-term incentive programs for the CEO, set to take effect in the following fiscal year.
For the short-term incentive program, the target opportunity as a percentage of base salary for Alemán will rise from 115% to 125%. This adjustment will influence the incentive payout due in 2026, which is based on the company’s performance in fiscal year 2025. Additionally, the long-term incentive program will see an increase in the target opportunity from 200% to 215% of the base salary, affecting the long-term incentive to be awarded in 2026. With analyst targets ranging from $20 to $26 per share and an overall "GOOD" Financial Health Score from InvestingPro, the company appears well-positioned for continued growth.
These changes to the CEO’s compensation package were part of a broader review by First BanCorp’s Board, as stated in the company’s 2024 Annual Proxy Statement filed with the SEC. No other modifications were reported to the short-term incentive program, long-term incentive program, or any other components of executive compensation under the Corporation’s compensation plans and programs.
First BanCorp is listed on the New York Stock Exchange under the ticker symbol (NYSE:FBP) and operates within the state commercial banks sector, classified under SIC code 6022. The information regarding the adjustments to the CEO’s compensation is based on the latest 8-K filing with the Securities and Exchange Commission.
In other recent news, First Bancorp (NASDAQ:FBNC) reported its fourth-quarter earnings for 2024, surpassing analyst expectations with an earnings per share (EPS) of $0.46, compared to the forecasted $0.41. The company’s revenue reached $241.47 million, exceeding the anticipated $237.64 million. This performance highlights First Bancorp’s resilience in a competitive market, with a net income of $76 million for the quarter, contributing to a full-year net income of $299 million. The company’s return on equity was 19.1%, underlining its strong capital position. Analysts from Piper Sandler and Wells Fargo (NYSE:WFC) discussed the company’s strategy and performance during the earnings call, with a focus on loan growth and deposit trends. First Bancorp is optimistic about sustaining mid-single-digit loan growth and anticipates a 13% increase in quarterly dividends. The company expects a net interest margin improvement of approximately 20 basis points by the end of 2025, supported by an estimated $1.5-$1.6 billion in investment portfolio cash flows. CEO Aurelio Aleman expressed confidence in the company’s future, highlighting strategic investments in technology and branch network expansions planned for 2025.
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