Form 4: Bread Financial Holdings EVP, CFO Perry S. Beberman Reports Stock Transactions

Perry S. Beberman, EVP and CFO of Bread Financial Holdings, reports acquisition and disposal of common stock and restricted stock units.

Summary

• Perry S. Beberman, the EVP and Chief Financial Officer of Bread Financial Holdings, reported transactions involving the company's common stock on February 18, 2025.
• These transactions included the acquisition of 11,655 shares of common stock represented by time-based restricted stock units (RSUs) that vest over three years.
• He also acquired 17,482 shares represented by performance-based RSUs, which may be adjusted based on performance targets at the end of a three-year period.
• Additionally, 2,675 units were acquired based on the company's return on equity (ROE) performance for 2022-2024.
• The company withheld 17,245 shares at a price of $62.1 to cover the reporting person's tax obligations upon the vesting of restricted stock units.
• Following these transactions, Beberman beneficially owns 134,721 shares of common stock.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing detailing stock transactions. The sentiment is neutral, with a slight positive leaning due to the acquisition of RSUs, indicating confidence in the company's future performance.

Positives

• The acquisition of performance-based RSUs suggests confidence in the company's future performance.
• The vesting of RSUs based on ROE performance indicates the achievement of certain financial goals.

Negatives

• The withholding of 17,245 shares for tax obligations reduces the number of shares directly held by the reporting person.

Risks

• The value of the RSUs is subject to the company's stock price fluctuations.
• The performance-based RSUs are contingent on meeting predetermined performance measures, which may not be achieved.
• Vesting of RSUs is subject to continued employment, creating a potential risk if employment is terminated.

Future Outlook

The vesting schedules of the time-based and performance-based RSUs extend over the next three years, indicating a long-term incentive structure for the executive.

Industry Context

Form 4 filings are a routine part of insider trading regulations, providing transparency into the transactions of company executives and their potential alignment with shareholder interests.

Comparison to Industry Standards

• RSU grants are a common form of executive compensation in the financial services industry.
• Vesting schedules and performance metrics vary widely depending on the company's specific goals and compensation philosophy.
• Comparing the size of the RSU grants and the performance metrics to those of peer companies (e.g., American Express, Capital One) would provide a better understanding of the competitiveness of Bread Financial Holdings' executive compensation.

Stakeholder Impact

• The transactions may influence investor perception of the company's stock.
• The vesting of RSUs incentivizes the executive to contribute to the company's long-term success.

Key Dates

Keywords

Form 4, Beneficial Ownership, Restricted Stock Units, Performance-Based RSUs, Time-Based RSUs, Stock Transactions, Bread Financial Holdings, Perry S. Beberman, ROE