Form 4: Booz Allen Hamilton Executive Thomas Pfeifer Reports Acquisition of Restricted Stock Units

Executive Vice President Thomas Pfeifer of Booz Allen Hamilton Holding Corp. reports the acquisition of restricted stock units under the company's 2023 Equity Incentive Plan.

Summary

• Thomas Pfeifer, an Executive Vice President at Booz Allen Hamilton Holding Corp, filed a Form 4 on May 28, 2024.
• The report details the acquisition of 3,151 shares of Class A Common Stock in the form of restricted stock units on May 23, 2024.
• These restricted stock units were granted under the Issuer's 2023 Equity Incentive Plan and are exempt under Rule 16b-3.
• One-third of the restricted stock units are scheduled to vest on each of March 31, 2025, 2026, and 2027, contingent upon Pfeifer's continued employment.
• Following the reported transaction, Pfeifer beneficially owns 30,413 shares, including restricted stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The grant of restricted stock units is a standard practice and indicates confidence in the executive and the company's future performance. There are no overtly negative aspects to the announcement.

Positives

• The grant of restricted stock units aligns executive incentives with the long-term performance of the company.
• The vesting schedule encourages continued employment and commitment from the executive.

Risks

• The value of the restricted stock units is subject to the market price of Booz Allen Hamilton's Class A common stock.
• The executive must remain employed with the company to fully vest the restricted stock units.

Future Outlook

The executive's compensation is tied to the future performance of the company's stock, incentivizing value creation.

Industry Context

Equity compensation is a common practice in the consulting industry to attract and retain top talent. Companies like Accenture, Deloitte, and McKinsey also use similar compensation strategies.

Comparison to Industry Standards

• Booz Allen Hamilton's equity incentive plan is similar to those offered by other major consulting firms such as Accenture and Deloitte, which also use restricted stock units as part of their executive compensation packages.
• The vesting schedule of one-third annually over three years is a standard practice in the industry, aligning with typical retention incentives.
• Compared to pure technology companies, the equity grants in consulting firms tend to be more conservative, reflecting the lower volatility and different growth profiles of these businesses.

Stakeholder Impact

• Shareholders may view the equity grant positively as it aligns executive interests with company performance.
• Employees may see this as a positive sign of the company's commitment to its leadership.

Key Dates