Form 4: Affiliated Managers Group Director Exercises Stock Options and Receives Stock Units

Karen L. Alvingham, a director at Affiliated Managers Group, exercised stock options and received restricted and deferred stock units, resulting in changes to her beneficial ownership of the company's common stock.

Summary

• On July 31, 2024, Karen L. Alvingham, a director of Affiliated Managers Group, Inc. (AMG), executed multiple transactions involving the company's stock.
• Alvingham exercised director stock options to acquire common stock at prices ranging from $69.63 to $160.01 per share, totaling 11,338 shares.
• These exercises were conducted under previously granted stock option plans.
• Additionally, Alvingham disposed of 5,787 shares to cover tax obligations at a price of $185.62.
• On July 29, 2024, Alvingham also acquired 544 restricted stock units and 372 deferred stock units.
• The restricted stock units vest in full on August 15, 2025, and represent the right to receive one share of AMG's common stock per unit.
• The deferred stock units reflect cash fees that the director has elected to defer, notionally invested in a measurement fund tracking AMG's common stock; these units become distributable upon separation from service as a director.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The exercise of stock options suggests confidence, but the disposal of shares for tax obligations is a neutral event. The granting of stock units is a positive sign of aligning director interests with shareholders.

Positives

• The exercise of stock options by a director can be seen as a positive signal, indicating confidence in the company's future performance.
• The acquisition of restricted stock units aligns the director's interests with those of the shareholders, as the value of the units is tied to the company's stock price.

Negatives

• The disposal of shares to cover tax obligations, while a common practice, could be perceived negatively if the amount is significant, although in this case it is a relatively small portion of the total holdings.

Risks

• There are no specific risks explicitly mentioned in this document.
• However, market conditions and company performance could impact the value of the stock options and stock units.

Industry Context

This filing is a routine disclosure related to insider transactions, which are common in publicly traded companies. These transactions are closely monitored by investors for insights into management's perspective on the company's value and future prospects.

Comparison to Industry Standards

• Stock option grants and restricted stock units are standard forms of compensation for directors and executives in the financial services industry.
• Companies like BlackRock, Franklin Resources, and T. Rowe Price also utilize similar equity-based compensation plans to align the interests of their leadership with those of their shareholders.
• The vesting schedules and exercise prices are generally in line with industry norms.

Stakeholder Impact

• The transactions may have a minor impact on shareholders by slightly diluting the stock, but the overall impact is likely minimal.
• The director's actions align her interests with those of the shareholders, which is generally viewed positively.

Key Dates