Form 4: Applied Digital Director Receives Stock Grants and Executes Power of Attorney

Rachel Lee, a director at Applied Digital Corporation, received stock grants and executed a power of attorney for SEC filings.

Summary

• Rachel Lee, a director of Applied Digital Corporation, received 28,606 restricted stock units (RSUs) on December 27, 2024, as compensation for board service.
• These RSUs will convert to common stock on a one-for-one basis and will fully vest on November 20, 2025, contingent on her continued service as a director.
• Ms. Lee also holds 46,190 shares of restricted stock granted on February 22, 2024, which vest over three years, and 33,029 shares of restricted stock granted on the same date that vest on February 22, 2025.
• Additionally, Ms. Lee executed a power of attorney on December 31, 2024, authorizing Wes Cummins, David Rench, and Mohammad Saidal LaVanway Mohmand to handle SEC filings on her behalf.

Sentiment

Score: 7

Explanation: The document reflects standard corporate practices for director compensation and compliance, indicating a neutral to slightly positive sentiment.

Positives

• The grant of RSUs to a director aligns with standard compensation practices for board service.
• The vesting schedule of the RSUs and restricted stock encourages long-term commitment from the director.
• The power of attorney simplifies the process of SEC filings for the director.

Risks

• The vesting of the RSUs and restricted stock is contingent on continued service, which could be a risk if the director leaves the board before the vesting dates.

Future Outlook

The vesting of the RSUs and restricted stock is contingent on the director's continued service, indicating a long-term commitment.

Industry Context

Granting stock options and restricted stock units to board members is a common practice in the corporate world to align their interests with those of the shareholders.

Comparison to Industry Standards

• The vesting schedule of the restricted stock and RSUs is typical for director compensation packages, often spanning multiple years to encourage long-term commitment.
• Companies like AMD and Nvidia also use similar stock-based compensation for their board members, with vesting periods ranging from one to three years.
• The use of a power of attorney for SEC filings is a standard practice to streamline administrative processes for directors.

Stakeholder Impact

• Shareholders may view the stock grants as a positive sign of aligning director interests with long-term company performance.
• The power of attorney ensures compliance with SEC regulations, which is beneficial for all stakeholders.

Next Steps

• The RSUs will vest on November 20, 2025, subject to continued board service.
• The restricted stock will vest on the specified dates, subject to continued board service.

Key Dates

Keywords

restricted stock units, power of attorney, director compensation, SEC filings, stock grants, Applied Digital Corporation, board service