LINKBANCORP, Inc. Stock Compensation Disclosure
As a result of the Merger, the Company assumed the LINKBANCORP, Inc. 2019 Equity Incentive Plan (the “2019 Plan”). The 2019 Plan authorized the issuance or delivery to participants of up to 450,000 shares of LINKBANCORP common stock pursuant to grants of incentive and non-statutory stock options. The Plan is administered by the members of LINKBANCORP’s Compensation Committee (the "Committee"). Unless the Committee specifies a different vesting schedule, awards under the Plan shall be granted with a vesting rate of 20 percent per year. Vesting may be accelerated under certain conditions or at the discretion of the Committee at any time. Employees and directors of LINKBANCORP or its subsidiaries were eligible to receive awards under the plan, except that nonemployees were not granted incentive stock options. Stock options are either “incentive” stock options or “nonqualified” stock options. Incentive stock options have certain tax advantages and must comply with the requirements of Section 422 of the Internal Revenue Code. The 2019 Plan was frozen such that no new awards would be granted under the 2019 Plan following receipt of shareholder approval of the LINKBANCORP, Inc. 2022 Equity Incentive Plan described within this footnote.
On May 26, 2022, the Company's shareholders approved the LINKBANCORP, Inc. 2022 Equity Incentive Plan (the "2022 Plan"). The 2022 Plan authorizes the issuance or delivery to participants of up to 475,000 shares of the Company's common stock pursuant to grants of restricted stock, restricted stock units, stock options, and non-qualified stock options. The 2022 Plan is administered by the members of LINKBANCORP’s Compensation Committee (the "Committee"). At least 95% of the awards under the 2022 Plan will vest no earlier than one year after the grant date.
On May 22, 2025, the Company's shareholders approved the LINKBANCORP, Inc. 2025 Equity Incentive Plan (the "2025 Plan"). The 2025 Plan authorizes the issuance or delivery to participants of up to 1,100,000 shares of the Company's common stock pursuant to grants of restricted stock, restricted stock units, stock options, including incentive stock options and non-qualified stock options. The 2025 Plan is administered by the Committee. At least 95% of the awards under the 2025 Plan will vest no earlier than one year after the grant date. The Company does not intend to issue further awards from the 2025 Plan.
The table below provides details of the Company's stock options at December 31, 2025.
|
|
Number |
|
|
Weighted- |
|
|
Weighted- |
|
|
Aggregate |
|
||||
Outstanding, December 31, 2024 |
|
|
591,791 |
|
|
$ |
9.10 |
|
|
|
5.8 |
|
|
$ |
142 |
|
Granted |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Expired/terminated |
|
|
(33,400 |
) |
|
|
10.01 |
|
|
|
— |
|
|
|
|
|
Exercised |
|
|
(11,077 |
) |
|
|
5.61 |
|
|
|
— |
|
|
|
|
|
Outstanding, December 31, 2025 |
|
|
547,314 |
|
|
$ |
9.12 |
|
|
|
5.1 |
|
|
$ |
224 |
|
Exercisable at period end |
|
|
417,914 |
|
|
$ |
9.62 |
|
|
|
4.3 |
|
|
$ |
81 |
|
The exercise prices for options outstanding as of December 31, 2025 ranged from $6.08 to $12.00.
The Company determined the expected life of the stock options using a simplified method approach allowed for plain-vanilla share options. The risk-free interest rate is based on the U.S. treasury yield curve in effect as of the grant date. Expected volatility was determined using the calculated value method of an option pricing model that substitutes the historical volatility of an appropriate industry/sector index for the expected volatility.
|
December 31, |
|
|
|
2024 |
|
|
Weighted average fair value of options granted |
$ |
1.66 |
|
Dividend yield |
4.60% |
|
|
Expected volatility |
35.24% |
|
|
Risk-free interest rate |
4.47% |
|
|
Expected life (in years) |
|
6.1 |
|
Assumed forfeiture rate |
0.00% |
|
|
The table below provides details of the Company's restricted stock activity at December 31, 2025.
|
|
Number |
|
|
Average Market Price at Grant |
|
||
Outstanding, December 31, 2024 |
|
|
393,083 |
|
|
$ |
6.40 |
|
Restricted stock units granted |
|
|
203,400 |
|
|
|
6.90 |
|
Expired/terminated |
|
|
(1,467 |
) |
|
|
|
|
Vested |
|
|
(174,887 |
) |
|
|
|
|
Outstanding, December 31, 2025 |
|
|
420,129 |
|
|
$ |
6.66 |
|
Additional information related to the equity incentive plans during each year follows:
|
December 31, |
|
|||||
|
2025 |
|
|
2024 |
|
||
Stock-based compensation expense recognized |
$ |
1,412 |
|
|
$ |
988 |
|
Number of unvested stock options |
|
|
|
|
|
||
Restricted stock plan |
|
420,129 |
|
|
|
393,083 |
|
Stock option plans |
|
129,400 |
|
|
|
189,800 |
|
Fair value of unvested stock options |
|
|
|
|
|
||
Restricted stock plan |
$ |
2,800 |
|
|
$ |
2,518 |
|
Stock option plans |
$ |
236 |
|
|
$ |
193 |
|
Amount remaining to be recognized as expense |
|
|
|
|
|
||
Restricted stock plan |
$ |
2,297 |
|
|
$ |
2,246 |
|
Stock option plans |
$ |
200 |
|
|
$ |
161 |
|
The remaining amounts of $2,297 and $200 for restricted stock and options, respectively, will both be recognized ratably as expense through December 31, 2030.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 30, 2023 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.