Form 4: Blackbaud EVP Kevin P. Gregoire Reports Changes in Beneficial Ownership

Kevin P. Gregoire, EVP and Chief Operating Officer of Blackbaud Inc., reports changes in beneficial ownership of company stock due to vesting of performance restricted stock units and subsequent tax liability fulfillment.

Summary

• On August 5, 2024, a portion of performance restricted stock units (PRSUs) granted to Kevin P. Gregoire on August 5, 2022, vested in full, resulting in the acquisition of 4,320 shares of common stock.
• The vesting was contingent upon Blackbaud achieving performance goals for the period ended December 31, 2023, and Gregoire's continued employment.
• On August 6, 2024, Gregoire forfeited 1,057 shares to cover tax liabilities related to the vesting of separate PRSUs granted on August 5, 2022, at a price of $74.5 per share.
• An additional 1,977 shares were forfeited on August 6, 2024, at $74.5 per share to cover tax liabilities from vesting of restricted stock granted August 5, 2022.
• Following these transactions, Gregoire's direct ownership of Blackbaud common stock is 118,048 shares.

Sentiment

Score: 6

Explanation: The document primarily reflects routine transactions related to executive compensation. The vesting of PRSUs suggests the company met certain performance goals, which is mildly positive. However, the subsequent tax liability fulfillment is a neutral event.

Positives

• The vesting of PRSUs indicates that Blackbaud achieved certain performance goals for the period ended December 31, 2023.

Future Outlook

The remaining PRSUs granted on August 5, 2022, will vest dependent on the achievement of performance goals for the period ended December 31, 2024, subject to continued employment.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies. It provides transparency into the alignment of executive incentives with company performance.

Comparison to Industry Standards

• Executive compensation packages including stock options and restricted stock units are standard practice among publicly traded companies, particularly in the technology sector.
• Companies like Salesforce (CRM) and Workday (WDAY) also utilize similar equity-based compensation strategies to incentivize their executives.
• The vesting of PRSUs based on performance metrics is a common method to align executive compensation with company goals, similar to practices observed in other SaaS companies.

Stakeholder Impact

• Shareholders may view the vesting of PRSUs as a positive sign, indicating that the company is achieving its performance goals.
• The transactions have a minimal direct impact on employees, customers, suppliers, or creditors.

Key Dates