Executive chair at Cathay General (CATY) gains stock via RSU vesting
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Cathay General Bancorp Executive Chairman Dunson K. Cheng reported multiple compensation-related equity transactions. On April 1, 2026, he exercised and vested a total of 41,395 performance-based restricted stock units (RSUs) into common stock that had been granted earlier and tied to performance goals.
Footnotes show different RSU awards earned between 52.875% and 150% of target based on performance, with these performance-based RSUs vesting on December 31, 2025. To cover tax obligations, 13,320 common shares were withheld at $50.69 per share, classified as tax-withholding dispositions rather than market sales.
After these vesting and withholding entries, Cheng holds 167,531 common shares directly, along with additional indirect holdings reported through a Husband & Wife Trust, a Nonmarital Share Trust, and an ESOP. No open-market purchases or sales were reported in this filing.
Positive
- None.
Negative
- None.
Insider Trade Summary
41,395 shares exercised/converted
Mixed
12 txns
Insider
CHENG DUNSON K
Role
Executive Chairman
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units | 9,997 | $0.00 | -- |
| Exercise | Restricted Stock Units | 10,466 | $0.00 | -- |
| Exercise | Restricted Stock Units | 20,932 | $0.00 | -- |
| Exercise | Common Stock | 13,281 | $0.00 | -- |
| Tax Withholding | Common Stock | 4,081 | $50.69 | $207K |
| Exercise | Common Stock | 17,132 | $0.00 | -- |
| Tax Withholding | Common Stock | 5,647 | $50.69 | $286K |
| Exercise | Common Stock | 12,078 | $0.00 | -- |
| Tax Withholding | Common Stock | 3,592 | $50.69 | $182K |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Restricted Stock Units — 0 shares (Direct);
Common Stock — 151,641 shares (Direct);
Common Stock — 384,577 shares (Indirect, Husband & Wife Trust)
Footnotes (1)
- Of the previously reported target award of 9,997 shares of performance-based restricted stock units, 121.74% of the target award was earned based upon the achievement of certain performance criteria. Of the previously reported target award of 10,466 shares of performance-based restricted stock units, 150% of the target award was earned based upon the achievement of certain performance criteria. Of the previously reported target award of 20,932 shares of performance-based restricted stock units, 52.875% of the target award was earned based upon the achievement of certain performance criteria. Shares of the Issuer's Common Stock received by the Reporting Person from the vesting of performance-based restricted stock units granted on July 27, 2023. Such restricted stock units were previously reported in Table II on a Form 4 filed by the Reporting Person with the Securities and Exchange Commission on July 31, 2023. Performance-based restricted stock units vested on December 31, 2025.
Key Figures
RSUs vested: 41,395 units
Tax-withheld shares: 13,320 shares
Withholding price: $50.69 per share
+5 more
8 metrics
RSUs vested
41,395 units
Total performance-based restricted stock units exercised into common stock
Tax-withheld shares
13,320 shares
Common shares withheld to satisfy tax obligations on vesting
Withholding price
$50.69 per share
Price used for F-code tax-withholding dispositions of common stock
Direct holdings
167,531 shares
Common stock directly owned after reported transactions
Husband & Wife Trust holdings
384,577 shares
Indirect common stock ownership via Husband & Wife Trust
Nonmarital Share Trust holdings
182,452 shares
Indirect common stock ownership via Nonmarital Share Trust
ESOP holdings
102,888 shares
Indirect common stock ownership reported as held by ESOP
RSU target achievement
150% of target
Highest performance-based RSU award earn-out percentage disclosed
Key Terms
performance-based restricted stock units, tax-withholding disposition, Husband & Wife Trust, Nonmarital Share Trust, +2 more
6 terms
performance-based restricted stock units financial
"Of the previously reported target award of 9,997 shares of performance-based restricted stock units..."
Performance-based restricted stock units are a type of employee equity award that converts into company shares only if predefined financial or operational targets are met over a set period. Think of it like a bonus check that becomes stock only when specific goals are hit; it ties pay to results, aligning managers’ incentives with shareholders. Investors care because these awards affect future share count, executive incentives, and signal how management’s success will be measured and rewarded.
tax-withholding disposition financial
"Payment of exercise price or tax liability by delivering securities"
A tax-withholding disposition is an event or transaction—such as selling or transferring securities, exercising options, or receiving compensation—that triggers a requirement to hold back part of the payment and remit it to tax authorities. It matters to investors because it reduces the cash they receive immediately and can change the timing and amount of taxable income, like a cashier taking a portion of your sale proceeds to pay taxes before you get the rest.
Husband & Wife Trust financial
"nature_of_ownership": "Husband & Wife Trust""
ESOP financial
"nature_of_ownership": "By ESOP""
An Employee Stock Ownership Plan (ESOP) is a program that gives employees ownership shares in their company, often as part of their benefits package. It acts like a company-sponsored savings plan, allowing workers to have a stake in the company's success, which can boost motivation and loyalty. For investors, ESOPs can influence company decisions and stock value, making them an important aspect of corporate ownership and governance.
Exercise or conversion of derivative security financial
"transaction_code_description": "Exercise or conversion of derivative security""
FAQ
What insider transactions did CATY Executive Chairman Dunson K. Cheng report?
Dunson K. Cheng reported the vesting and exercise of performance-based RSUs into common stock, plus related tax-withholding share dispositions. These events reflect compensation vesting mechanics, not open-market buying or selling of Cathay General Bancorp shares.
How many performance-based RSUs vested for CATY’s executive chairman?
A total of 41,395 performance-based restricted stock units vested and were exercised into common stock. These units came from several awards where earned amounts exceeded or fell below target, based on disclosed performance criteria and a December 31, 2025 vesting date.
How were the CATY performance-based RSU awards determined for the executive chairman?
Footnotes state the performance-based RSU awards were earned at 121.74%, 150%, and 52.875% of their original targets. These percentages were based on achieving specified performance criteria tied to the company’s results before the December 31, 2025 vesting date.