CEO Liu boosts Cathay General (NASDAQ: CATY) stake after RSU vesting
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Cathay General Bancorp President & CEO Chang Liu reported multiple equity compensation transactions. On April 1, 2026, performance-based restricted stock units covering 47,954 shares of common stock were earned and converted based on the achievement of specified performance criteria.
The underlying awards were target grants of 11,581, 12,124 and 24,249 performance-based restricted stock units, with 121.74%, 150% and 52.875% of the targets earned, respectively. As part of the vesting, 25,046 shares of common stock were withheld at $50.69 per share to satisfy tax obligations, a non-market tax-withholding disposition. Following these transactions, Liu directly owned 132,655 shares of Cathay General common stock.
Positive
- None.
Negative
- None.
Insider Trade Summary
47,954 shares exercised/converted
Mixed
9 txns
Insider
Liu Chang
Role
President & CEO
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units | 11,581 | $0.00 | -- |
| Exercise | Restricted Stock Units | 12,124 | $0.00 | -- |
| Exercise | Restricted Stock Units | 24,249 | $0.00 | -- |
| Exercise | Common Stock | 15,385 | $0.00 | -- |
| Tax Withholding | Common Stock | 7,828 | $50.69 | $397K |
| Exercise | Common Stock | 19,846 | $0.00 | -- |
| Tax Withholding | Common Stock | 10,098 | $50.69 | $512K |
| Exercise | Common Stock | 13,992 | $0.00 | -- |
| Tax Withholding | Common Stock | 7,120 | $50.69 | $361K |
Holdings After Transaction:
Restricted Stock Units — 0 shares (Direct);
Common Stock — 123,863 shares (Direct)
Footnotes (1)
- Of the previously reported target award of 11,581 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 12,124 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 24,249 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 converted: 47,954 shares
Tax-withheld shares: 25,046 shares
Tax withholding price: $50.69 per share
+5 more
8 metrics
RSUs converted
47,954 shares
Performance-based restricted stock units converted into common stock on April 1, 2026
Tax-withheld shares
25,046 shares
Shares withheld to cover tax liabilities at vesting
Tax withholding price
$50.69 per share
Value used for F-code tax-withholding dispositions
Post-transaction holdings
132,655 shares
Common stock directly owned by CEO after all reported transactions
Award 1 performance achievement
121.74% of target
Performance-based RSU award originally 11,581 target shares
Award 2 performance achievement
150% of target
Performance-based RSU award originally 12,124 target shares
Award 3 performance achievement
52.875% of target
Performance-based RSU award originally 24,249 target shares
Vesting date
December 31, 2025
Performance-based restricted stock units vesting date
Key Terms
performance-based restricted stock units, Exercise or conversion of derivative security, tax-withholding disposition, target award, +1 more
5 terms
performance-based restricted stock units financial
"Of the previously reported target award of 11,581 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.
Exercise or conversion of derivative security financial
"Transaction code M is described as Exercise or conversion of derivative security."
tax-withholding disposition financial
"Transaction code F reflects a tax-withholding disposition to pay liabilities using shares."
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.
target award financial
"Of the previously reported target award of 12,124 shares of performance-based restricted stock units..."
vesting financial
"Performance-based restricted stock units vested on December 31, 2025."
Vesting is the process by which you earn full ownership of something, like company stock or a retirement benefit, over time. It’s like earning the right to keep a gift piece by piece the longer you stay with a company, making sure employees stay committed before they receive all the benefits.
FAQ
What insider equity transactions did CATY CEO Chang Liu report?
Chang Liu reported vesting and conversion of performance-based restricted stock units into 47,954 shares of Cathay General common stock. These awards were earned based on achieving specific performance criteria and represent compensation-related, not open-market, transactions.
What performance levels were achieved on Chang Liu’s CATY performance-based RSUs?
The CEO’s performance-based restricted stock unit awards earned 121.74%, 150%, and 52.875% of their respective target share amounts. These percentages determine how many shares vested based on achieving predefined performance criteria set at grant.
When did the CATY performance-based restricted stock units vest for the CEO?
The performance-based restricted stock units vested on December 31, 2025. Shares of Cathay General common stock from these vested units were then delivered and reported on the Form 4 dated April 1, 2026 as derivative exercises and related tax-withholding dispositions.
Are the CATY Form 4 transactions by CEO Chang Liu open-market purchases or sales?
No. The transactions are derivative exercises and tax-withholding dispositions tied to performance-based restricted stock units. Shares were acquired upon vesting, and a portion was withheld to pay taxes, rather than being bought or sold on the open market.