Form 4: Applied Digital Corp. CFO Receives 490,000 Restricted Stock Units

Mohammad Saidal LaVanway, CFO of Applied Digital Corp., was granted 490,000 restricted stock units (RSUs) on October 17, 2024, which vest over a period of three years.

Summary

• On October 17, 2024, Mohammad Saidal LaVanway, the Chief Financial Officer of Applied Digital Corp., received 490,000 restricted stock units (RSUs).
• These RSUs represent a contingent right to receive shares of Applied Digital Corp. common stock, cash, or a combination thereof on a one-for-one basis.
• The RSUs vest in six equal installments, with one-sixth vesting on each of April 4, 2025, October 4, 2025, April 4, 2026, October 4, 2026, April 4, 2027 and October 4, 2027.
• Vesting is contingent upon LaVanway's continued employment with the company through each applicable vesting date.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a standard compensation practice that aligns executive interests with shareholder value. The vesting schedule promotes long-term commitment.

Positives

• The grant of RSUs aligns the CFO's interests with those of the shareholders, incentivizing him to contribute to the company's long-term success.
• The vesting schedule encourages continued employment and commitment to the company.

Risks

• The value of the RSUs is dependent on the future performance of Applied Digital Corp.'s stock.
• If the CFO leaves the company before the RSUs fully vest, he will forfeit the unvested portion.

Future Outlook

The document does not contain any specific forward-looking statements beyond the vesting schedule of the RSUs.

Industry Context

Granting RSUs to executives is a common practice in the technology and digital infrastructure industries to attract and retain talent, aligning their compensation with the company's stock performance.

Comparison to Industry Standards

• RSU grants are a standard form of compensation for executives in publicly traded companies, particularly in growth-oriented sectors like Applied Digital's.
• The size of the grant (490,000 RSUs) would be assessed relative to the company's market capitalization, the CFO's role and responsibilities, and industry benchmarks for executive compensation.
• Comparable companies in the data center or digital infrastructure space, such as Core Scientific or Marathon Digital Holdings, also utilize equity-based compensation to incentivize their leadership teams.

Stakeholder Impact

• Shareholders may view the RSU grant positively as it incentivizes the CFO to drive long-term value creation.
• Employees may see the grant as a sign of the company's commitment to its leadership team.

Key Dates