Form 4: Academy Sports & Outdoors EVP & CFO Receives Stock Grants

Earl Carlton Ford IV, EVP & CFO of Academy Sports & Outdoors, received grants of restricted stock units (RSUs) on March 26, 2024.

Summary

• Earl Carlton Ford IV, the EVP & CFO of Academy Sports & Outdoors, received two grants of restricted stock units (RSUs) on March 26, 2024.
• One grant consists of 9,544 performance-based restricted stock units (PRSUs) that vest based on the company's adjusted pre-tax income and return on invested capital over a three-year period from February 4, 2024, to January 30, 2027.
• The vesting of these PRSUs can range from 0% to 200% of the granted amount, depending on the achievement of the performance metrics, and requires continued service with the issuer through the vesting date.
• The other grant consists of 9,544 time-based RSUs that vest in three equal installments beginning on the first anniversary of the grant date.
• Each restricted stock unit represents a contingent right to receive one share of Academy Sports & Outdoors common stock.

Sentiment

Score: 7

Explanation: The document is a routine disclosure of executive compensation. The grant of RSUs is generally viewed positively as it aligns management's interests with shareholders, but the actual impact depends on the company's future performance.

Positives

• The grant of performance-based RSUs aligns executive compensation with company performance, incentivizing the CFO to improve adjusted pre-tax income and return on invested capital.
• The time-based RSUs provide a retention incentive for the CFO.

Risks

• The performance metrics for the PRSUs may not be achieved, resulting in a lower vesting percentage.
• The value of the RSUs is subject to the price fluctuations of Academy Sports & Outdoors common stock.

Future Outlook

The vesting of the PRSUs is contingent upon the company's performance over the next three years.

Industry Context

Granting stock-based compensation is a common practice in the industry to align executive interests with shareholder value and incentivize long-term growth.

Comparison to Industry Standards

• Companies like Dick's Sporting Goods (DKS) and Bass Pro Shops also utilize stock-based compensation for their executives.
• The specific metrics used for performance-based vesting (adjusted pre-tax income and return on invested capital) are common indicators of financial health and efficiency in the retail sector.
• The vesting schedules and performance targets would need to be compared to those of peer companies to determine if they are more or less aggressive.

Stakeholder Impact

• Shareholders: The grant of RSUs aligns management's interests with shareholder value.
• Employees: The performance-based component may incentivize employees to improve company performance.

Key Dates