Business Context and Reporting Period
Company: First BanCorp. (FBP)
Filing Type: Form 8-K (Current Report)
Date of Report: March 19, 2025
Subject: Item 5.02 - Compensatory Arrangements of Certain Officers (CEO)
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. The document is limited to executive compensation adjustments.
Material Changes
The Board of Directors approved changes to the compensation structure for CEO Aurelio Alemán, effective April 1, 2025, as part of an annual competitive review:
- Base Salary: Increased by 3.5% from $1,080,000 to $1,117,800 annually.
- Short-Term Incentive: Target opportunity increased from 115% to 125% of base salary (applicable to the 2026 payout based on 2025 performance).
- Long-Term Incentive: Target opportunity increased from 200% to 215% of base salary (applicable to awards granted in 2026).
No changes were made to other components of executive compensation plans.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, management commentary on operations, or discussion of risks and contingencies. The compensation changes were guided by independent consultant Pearl Meyer & Partners LLC.
Investor Verification Checklist
- Verify the effective date of the salary increase (April 1, 2025).
- Confirm the specific fiscal year performance metrics tied to the new short-term incentive targets.
- Review the 2024 Annual Proxy Statement for baseline compensation plan details referenced in this filing.
- Monitor future filings for the actual grant of long-term incentives in 2026.