Pacific Mercantile Bancorp (PMBC) has postponed its annual meeting after it discovered that it awarded too many stock option grants to its former chief executive.
The Costa Mesa, Calif., company disclosed in a regulatory filing Friday that it had rescheduled the meeting, initially set for May 22, to June 5.
Pacific Mercantile said in its amended proxy it awarded 325,000 stock option grants last year to Raymond Dellerba, who retired as CEO earlier this year after reaching the company's mandatory retirement age. After realizing that its 2010 equity incentive plan included an annual cap of 200,000 grants, the company rescinded and cancelled 125,000 of the grants, the filing said. The rescinded options had an exercise price of $5.34 a share.
The filing added that Pacific Mercantile's compensation committee approved a new grant on Thursday that awarded Dellerba, who remains vice chairman, 125,000 stock options at an exercise price of $6.38 a share. The grants will to vest in quarterly installments until April 2015, contingent on Dellerba's "continued employment or service" with the company.
The changes forced Pacific Mercantile to adjust some of the compensation tables in its proxy statement.