Form 4: Academy Sports & Outdoors President Receives Stock Grants

Samuel J. Johnson, President of Academy Sports & Outdoors, was granted restricted stock units and performance-based restricted stock units on March 26, 2024.

Summary

• Samuel J. Johnson, President of Academy Sports & Outdoors, received grants of restricted stock units (RSUs) and performance-based restricted stock units (PRSUs) on March 26, 2024.
• The RSUs vest in three equal installments beginning on the first anniversary of the grant date.
• The PRSUs vest if certain pre-established performance metrics related to the Company's adjusted pre-tax income and return on invested capital over a 3-year period (February 4, 2024 to January 30, 2027) are achieved and certified by the Issuer's compensation committee.
• The number of PRSUs that vest may vary from 0% to 200% of the 22,907 shown, depending on performance.
• Both the RSUs and PRSUs represent a contingent right to receive one share of Academy Sports & Outdoors common stock per unit.

Sentiment

Score: 6

Explanation: The document is a routine disclosure of executive compensation. It's neutral in tone and doesn't contain any information that would significantly impact investor sentiment positively or negatively.

Positives

• The grant of RSUs and PRSUs aligns the President's interests with those of the shareholders.
• The performance-based vesting of the PRSUs incentivizes the President to improve the company's financial performance, specifically adjusted pre-tax income and return on invested capital.

Risks

• The PRSUs may not vest at all if the performance metrics are not met.
• The value of the RSUs and PRSUs is subject to the market price of Academy Sports & Outdoors common stock.

Future Outlook

The vesting of the PRSUs is contingent upon the company achieving certain pre-established performance metrics related to adjusted pre-tax income and return on invested capital over a 3-year period ending January 30, 2027.

Industry Context

Grants of restricted stock and performance-based restricted stock are common forms of executive compensation used to align management's interests with those of shareholders and incentivize performance. The specific metrics used for performance-based vesting vary by company and industry.

Comparison to Industry Standards

• Comparing Academy Sports & Outdoors' executive compensation structure to similar retailers like Dick's Sporting Goods (DKS) or Bass Pro Shops (privately held) would provide a benchmark for assessing the competitiveness and appropriateness of the grants.
• Analyzing the specific performance metrics (adjusted pre-tax income and return on invested capital) against industry averages and competitor targets would offer further insights into the rigor and attainability of the vesting conditions.
• Reviewing proxy statements and executive compensation disclosures of peer companies can reveal common practices and trends in equity-based compensation.

Stakeholder Impact

• Shareholders may view the grants positively as they align management's interests with long-term company performance.
• Employees may be motivated by the potential for improved company performance driven by incentivized executives.

Key Dates