Form 4: Blackbaud Executive Reports Stock Transactions Following Vesting of Performance-Based Units

David J. Benjamin, EVP and Chief Commercial Officer of Blackbaud, reports acquisition and disposal of common stock related to vesting of performance-based restricted stock units and a restricted stock award.

Summary

• David J. Benjamin, an executive at Blackbaud Inc., filed a Form 4 detailing changes in beneficial ownership of the company's stock.
• On February 18, 2025, 4,613 shares of common stock were acquired due to the vesting of performance-restricted stock units (PRSUs) granted on February 13, 2023, based on the company achieving performance goals for the period ended December 31, 2024.
• On February 19, 2025, an additional 16,943 shares were acquired representing a restricted stock award which vests in three equal annual installments beginning on February 19, 2026.
• Also on February 19, 2025, 2,297 shares were forfeited to cover tax liabilities incurred from the vesting of the PRSUs.
• Following these transactions, Benjamin directly owns 65,655 shares of Blackbaud common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The vesting of PRSUs suggests the company met performance goals, which is positive. The forfeiture of shares for tax liabilities is a standard procedure and doesn't significantly impact sentiment.

Positives

• The vesting of PRSUs indicates that Blackbaud achieved certain performance goals for the period ended December 31, 2024.
• The executive's continued holding of a significant number of shares (65,655) suggests confidence in the company's future performance.

Negatives

• The forfeiture of 2,297 shares to cover tax liabilities, while standard, reduces the total number of shares held by the executive.

Risks

• Future vesting of the remaining PRSUs granted in 2023 is contingent on the achievement of performance goals for the period ending December 31, 2025.
• The vesting of the restricted stock award is subject to continued employment, creating a potential risk if the executive leaves the company.

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

Form 4 filings are a routine part of executive compensation and provide transparency into the alignment of management's interests with those of shareholders. Vesting of performance-based equity is a common practice to incentivize executives to achieve company goals.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded companies, including Blackbaud's peers in the software and technology sectors.
• Companies like Salesforce, Oracle, and SAP also utilize similar compensation structures to align executive incentives with shareholder value creation.
• The specific performance metrics and vesting schedules vary depending on the company's strategic goals and industry benchmarks.

Stakeholder Impact

• Shareholders may view the vesting of PRSUs positively, as it indicates the company achieved certain performance goals.
• Employees may be motivated by the executive's stock ownership, aligning their interests with the company's success.

Next Steps

• Continued monitoring of executive stock ownership and future Form 4 filings.
• Tracking the company's performance against the goals required for the vesting of the remaining PRSUs.

Key Dates