Form 4: Bread Financial Holdings Executive Receives Stock Grants and Settles Tax Obligations

Valerie E. Greer, EVP and Chief Commercial Officer of Bread Financial Holdings, received new grants of restricted stock units and had shares withheld to cover tax obligations.

Summary

• Valerie E. Greer, EVP and Chief Commercial Officer of Bread Financial Holdings, reported transactions related to the company's common stock on February 18, 2025.
• Greer received a grant of 11,655 time-based restricted stock units (RSUs) that will vest over three years.
• Another grant of 17,482 performance-based RSUs was also awarded, with vesting contingent on meeting predetermined performance measures on February 18, 2028.
• An additional 2,026 units were earned based on the company's return on equity (ROE) performance for 2022, 2023, and 2024, bringing the total to 12,053 units from a previous grant on February 15, 2022.
• The company withheld 14,930 shares at a price of $62.1 to satisfy Greer's tax withholding obligations upon the vesting of restricted stock units.
• Following these transactions, Greer beneficially owns 153,207 shares of Bread Financial Holdings common stock.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which are generally viewed positively as they align executive interests with company performance. The sentiment is neutral to slightly positive.

Positives

• The granting of RSUs to a key executive aligns their interests with the long-term performance of the company.
• The vesting schedule of the RSUs incentivizes continued employment and contribution to the company's success.
• The performance-based RSUs further incentivize the achievement of specific company goals.

Negatives

• The withholding of shares to cover tax obligations reduces the executive's overall holdings, although this is a standard practice.

Risks

• The vesting of performance-based RSUs is contingent on meeting predetermined performance measures, which may not be achieved.
• The value of the RSUs is subject to the fluctuations of the company's stock price.

Future Outlook

The document does not contain specific forward-looking statements, but the vesting of RSUs is tied to continued employment and potentially to the company's performance.

Industry Context

Stock grants and RSU awards are common practices in the financial industry to incentivize and retain key executives.

Comparison to Industry Standards

• RSU grants are a standard compensation practice across the financial services industry, used by companies like American Express, Capital One, and Discover Financial Services.
• The vesting schedules and performance metrics associated with these grants are typically aligned with industry benchmarks for executive compensation.
• The size of the grants is likely benchmarked against peer companies to ensure competitive compensation packages.

Stakeholder Impact

• Shareholders may view the RSU grants positively as they incentivize executive performance and align interests.
• Employees may see the grants as a sign of the company's commitment to its leadership team.
• The tax withholding may have a minor impact on the company's financials.

Key Dates

Keywords

RSU, restricted stock units, performance-based, time-based, beneficial ownership, Form 4, Bread Financial Holdings, Greer, Vesting, Stock