Form 4: Ares Management CFO Jarrod Phillips Reports Stock Grant and Tax Withholding

Ares Management CFO Jarrod Phillips reports the acquisition of 70,000 shares of Class A Common Stock and a disposition of 8,397 shares to cover tax obligations.

Summary

• On January 31, 2025, Jarrod Phillips, CFO of Ares Management Corp, acquired 70,000 shares of Class A Common Stock.
• These shares were granted under an equity incentive plan, with each restricted unit representing the right to receive one share upon vesting.
• The restrictions on these units are scheduled to lapse in four equal installments on January 31, 2027, 2028, 2029, and 2030.
• Additionally, 8,397 shares of Class A Common Stock were withheld by Ares Management to satisfy tax obligations related to the vesting of restricted units at a price of $198.22.
• Following these transactions, Phillips directly owns 244,931 shares of Class A Common Stock, which includes 185,407 restricted units granted under an equity incentive plan.
• Phillips also directly owns 253,328 restricted units granted under an equity incentive plan.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The equity grant suggests confidence in the company's future, and the vesting schedule aligns management's interests with shareholders. The tax withholding is a normal part of equity compensation.

Positives

• The grant of 70,000 shares to the CFO suggests confidence in the company's future performance.
• The equity incentive plan aligns the CFO's interests with those of the shareholders.

Future Outlook

The vesting schedule of the restricted units extends to January 31, 2030, indicating a long-term commitment from the CFO.

Industry Context

Equity grants are a common practice in the asset management industry to incentivize and retain key executives.

Comparison to Industry Standards

• Blackstone and Apollo Global Management also utilize equity-based compensation for their executives.
• These grants are typically structured with vesting schedules tied to performance and continued employment, similar to the Ares Management plan.

Stakeholder Impact

• Shareholders may view the equity grant positively as it aligns management's interests with the company's long-term success.
• Employees may see the grant as a sign of the company's commitment to its executives.

Key Dates

Keywords

Ares Management, Jarrod Phillips, CFO, Class A Common Stock, Equity Incentive Plan, Restricted Units, Beneficial Ownership, Form 4, SEC