Form 4: Blackbaud EVP Kevin McDearis Reports Stock Transactions

Kevin McDearis, EVP & Chief Technology Officer of Blackbaud Inc., reports acquisition and disposal of company stock related to vesting of performance restricted stock units and a restricted stock award.

Summary

• Kevin McDearis, EVP & Chief Technology Officer of Blackbaud Inc., reported transactions involving Blackbaud's common stock.
• On February 18, 2025, 4,059 shares were acquired upon the vesting of performance-restricted stock units (PRSUs) granted on February 13, 2023.
• On February 19, 2025, 15,640 shares were acquired as part of a restricted stock award vesting in three equal annual installments beginning February 19, 2026.
• Also on February 19, 2025, 1,849 shares were forfeited to cover tax liabilities related to the vesting of the PRSUs at a price of $70.96.
• Following these transactions, McDearis beneficially owns 71,520 shares of Blackbaud common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of PRSUs suggests the company met performance targets, which is a positive signal. The restricted stock award indicates a commitment to retaining the executive. However, the tax liability share forfeiture is a minor negative.

Positives

• The vesting of PRSUs indicates the company achieved certain performance goals for the period ended December 31, 2024.
• The restricted stock award suggests ongoing commitment and retention incentives for the executive.

Negatives

• The forfeiture of shares to cover tax liabilities reduces the net gain from the vesting of PRSUs.

Future Outlook

The remaining PRSUs granted in 2023 will vest dependent on the achievement of performance goals for the period ended December 31, 2025, subject to continued employment; the restricted stock award vests in three equal annual installments beginning on February 19, 2026, subject to continued employment.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies and are closely watched by investors as they can provide insights into management's confidence in the company's future performance. Vesting of performance-based equity indicates achievement of pre-defined goals.

Comparison to Industry Standards

• Executive compensation packages often include a mix of salary, bonus, stock options, and restricted stock units.
• The vesting schedules and performance metrics associated with equity grants are typically aligned with industry benchmarks and company-specific goals.
• Companies like Salesforce (CRM) and Workday (WDAY), which operate in similar sectors, also utilize equity-based compensation to incentivize and retain key executives.

Stakeholder Impact

• Shareholders may view the vesting of PRSUs positively, as it indicates the achievement of performance goals.
• Employees may be motivated by the company's performance and the executive's continued commitment.
• The transactions have a limited direct impact on customers, suppliers, and creditors.

Key Dates