Form 4: ASO CFO Ford IV Receives Significant Equity Grants

Academy Sports & Outdoors EVP & CFO Earl Carlton Ford IV reported new equity grants, including performance-based and time-based restricted stock units, alongside a routine stock disposition for tax purposes.

Summary

• Earl Carlton Ford IV, EVP & CFO of Academy Sports & Outdoors, Inc. (ASO), reported transactions involving the company's common stock and restricted stock units.
• On March 20, 2026, Ford IV was granted 17,314 performance-based restricted stock units (PRSUs) and 17,314 time-based restricted stock units.
• The PRSUs vest based on achieving specific company performance metrics (adjusted pre-tax income, return on invested capital, and adjusted free cash flow) over a three-year period from February 1, 2026, to February 3, 2029, with potential vesting from 0% to 200%.
• The time-based restricted stock units granted on March 20, 2026, will vest in three equal installments starting on the first anniversary of the grant date.
• On March 23, 2026, 1,289 common shares were acquired through the conversion of previously granted time-based restricted stock units (from a March 21, 2023 grant).
• Concurrently, 530 shares of common stock were disposed of at a price of $51.98 per share, likely to cover tax obligations related to the vesting of restricted stock units.
• Following these transactions, Ford IV beneficially owns 15,678 shares of common stock directly and 34,628 derivative securities (RSUs).

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, reflecting standard executive compensation practices that align management incentives with long-term company performance and retention, without indicating any immediate operational or financial shifts.

Positives

• Grant of 17,314 performance-based restricted stock units (PRSUs) aligns management incentives with long-term company performance metrics (adjusted pre-tax income, return on invested capital, adjusted free cash flow).
• Grant of 17,314 time-based restricted stock units promotes executive retention through multi-year vesting schedules.
• The grants are part of the Company's 2020 Omnibus Incentive Plan, indicating a structured approach to executive compensation.

Negatives

• Disposition of 530 shares of common stock at $51.98, likely for tax withholding, reduces direct beneficial ownership.

Risks

• The vesting of performance-based restricted stock units is contingent on achieving specific financial metrics, meaning the actual number of shares received could vary from 0% to 200% of the granted amount, introducing uncertainty for the reporting person.

Future Outlook

The vesting of 17,314 performance-based restricted stock units is tied to the company's adjusted pre-tax income, return on invested capital, and adjusted free cash flow over a three-year period ending February 3, 2029, indicating a focus on future financial performance. Additionally, 17,314 time-based restricted stock units will vest in three equal installments starting March 20, 2027, contingent on continued service.

Industry Context

StockSavvy.ai notes that the grant of performance-based and time-based restricted stock units to a key executive like the EVP & CFO is a standard practice in the retail and sporting goods industry. This compensation structure aims to align executive incentives with shareholder value creation and long-term company performance, a common strategy among publicly traded companies to attract and retain top talent.

Comparison to Industry Standards

• The use of both performance-based and time-based restricted stock units is a common compensation strategy in the retail sector, similar to practices at companies like Dick's Sporting Goods (DKS) or Lululemon Athletica (LULU), which often tie executive compensation to a mix of financial performance targets and continued service.
• The specific performance metrics (adjusted pre-tax income, ROIC, adjusted free cash flow) are standard financial indicators used across various industries, including retail, to measure operational efficiency and shareholder value creation.
• The disposition of shares for tax withholding upon vesting is a routine event for executives receiving equity compensation, consistent with practices observed at most public companies.

Related Party Transactions

• The grants of restricted stock units to Earl Carlton Ford IV, an EVP & CFO, constitute related party transactions as they involve compensation from the company to a key executive.

Stakeholder Impact

• Shareholders: The grants align executive incentives with shareholder interests through performance-based vesting, potentially leading to improved long-term company performance. The disposition for tax purposes is a routine event and has minimal direct impact.
• Employees: The incentive plan demonstrates the company's commitment to executive compensation, which can indirectly influence broader employee morale and retention strategies.
• Management: The grants provide significant long-term equity incentives, enhancing retention and motivation for the EVP & CFO.

Next Steps

• The company's compensation committee will certify the achievement of performance metrics for the PRSUs after the three-year performance period ending February 3, 2029.
• The time-based restricted stock units granted on March 20, 2026, will begin vesting in three equal installments starting on March 20, 2027.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation and insider transactions, which are generally not considered significant drivers of short-term stock price movements. The grants align executive incentives with long-term performance, which is a positive for corporate governance, but does not provide new information warranting a change in investment thesis. Therefore, a "hold" recommendation is appropriate as it reflects the neutral impact on immediate valuation.

Keywords

Academy Sports & Outdoors, ASO, Earl Carlton Ford IV, EVP & CFO, Form 4, SEC filing, insider transaction, restricted stock units, RSUs, performance-based RSUs, time-based RSUs, executive compensation, equity grant, stock disposition, tax withholding, beneficial ownership