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

Ella Benson, a director at Applied Digital Corporation, received restricted stock units and updated her power of attorney for SEC filings.

Summary

• Ella Benson, a director of Applied Digital Corporation, received 28,606 restricted stock units (RSUs) on December 27, 2024.
• These RSUs were granted for board service and will vest on November 20, 2025, contingent on her continued service as a director.
• The RSUs convert to common stock on a one-for-one basis.
• Ms. Benson also holds 60,976 shares of restricted stock granted on May 6, 2024, which vest over three years.
• Additionally, she holds 40,485 shares of restricted stock granted on May 6, 2024, that vest on April 30, 2025.
• Ms. Benson updated her power of attorney on December 31, 2024, appointing Wes Cummins, David Rench, and Mohammad Saidal LaVanway Mohmand as her attorneys-in-fact for SEC filings.

Sentiment

Score: 7

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

Positives

• The grant of RSUs to a director aligns with standard practice for incentivizing board members.
• The vesting schedule of the RSUs and restricted stock encourages long-term commitment from the director.
• The updated 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 document does not contain any specific forward-looking statements or guidance.

Industry Context

The granting of stock-based compensation to board members is a common practice in publicly traded companies to align their interests with those of shareholders. The use of a power of attorney for SEC filings is also a standard administrative procedure.

Comparison to Industry Standards

• Stock grants to non-employee directors are a common practice across the technology sector, with vesting schedules typically ranging from one to three years.
• Companies like NVIDIA and AMD also use a mix of stock options and restricted stock units for director compensation.
• The vesting schedule for Ella Benson's grants is fairly standard, with a mix of one, two and three year vesting periods.

Stakeholder Impact

• The stock grants to the director may have a minor dilutive effect on existing shareholders.
• The updated power of attorney ensures compliance with SEC regulations.

Key Dates

Keywords

restricted stock units, power of attorney, director compensation, SEC filings, stock grants, Applied Digital Corporation, corporate governance