Form 4: Albertsons Executive Michael Theilmann Awarded Restricted Stock Units

EVP & Chief HR Officer Michael Theilmann receives time-based and performance-based restricted stock units in Albertsons Companies, Inc.

Summary

• Michael Theilmann, EVP & Chief HR Officer of Albertsons Companies, Inc., was granted time-based and performance-based restricted stock units on April 24, 2024.
• He received 56,082 time-based restricted stock units that will vest in three equal installments on February 22, 2025, February 28, 2026, and February 27, 2027, contingent upon continuous employment.
• Additionally, he received 56,082 performance-based restricted stock units tied to the company's fiscal year performance goals for 2024, 2025, and 2026.
• Each restricted stock unit represents a contractual right to receive one share of Class A common stock of Albertsons Companies, Inc.

Sentiment

Score: 7

Explanation: The document indicates a standard executive compensation practice, aligning management interests with shareholder value. The sentiment is neutral to slightly positive as it suggests confidence in the executive and the company's future performance.

Positives

• The granting of restricted stock units aligns executive compensation with company performance and long-term value creation.
• The vesting schedule for the time-based units encourages continued employment and commitment from the executive.
• Performance-based units incentivize the achievement of specific fiscal year goals.

Risks

• The value of the restricted stock units is subject to the market price of Albertsons Companies, Inc. Class A common stock.
• The performance-based units are contingent upon the company achieving its fiscal year performance goals, which may not be met.
• The time-based units are contingent upon continuous employment, and the executive leaving the company would forfeit unvested units.

Future Outlook

The executive's compensation is now tied to the future performance of Albertsons Companies, Inc., incentivizing efforts to increase shareholder value.

Industry Context

Granting stock options and restricted stock units is a common practice in the retail industry to attract, retain, and incentivize top executive talent. This aligns executive interests with those of shareholders.

Comparison to Industry Standards

• Companies like Kroger, Walmart, and Target also utilize stock-based compensation for their executives.
• The specific terms of the vesting schedules and performance metrics would need to be compared to those of Albertsons' peers to determine if they are in line with industry standards.
• Typically, vesting schedules are between 3-5 years, and performance metrics are tied to revenue growth, profitability, or return on invested capital.

Stakeholder Impact

• Shareholders may view this as a positive sign, aligning executive interests with company performance.
• Employees may see this as a sign of stability and commitment from the executive team.

Key Dates