Form 4: Broadstone Net Lease Director Michael Coke Receives Equity Award

Director Michael Coke of Broadstone Net Lease, Inc. reports the acquisition of 6,883 shares of restricted stock and a disposition of 22,952 shares held indirectly through a family trust.

Summary

• On May 3, 2024, Michael Coke, a director of Broadstone Net Lease, Inc. (BNL), was granted 6,883 shares of restricted stock as part of the company's non-employee director compensation policy.
• These shares will vest on the earlier of May 3, 2025, or the date of BNL's next annual meeting of stockholders, provided the meeting is at least 50 weeks after the 2024 meeting.
• Following this transaction, Coke directly owns 41,700 shares, including the unvested restricted stock.
• Coke also indirectly owns 22,952 shares through a family trust where he is a co-trustee and he and his family are the sole beneficiaries.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The granting of equity is a standard practice and aligns director interests with shareholders. There are no immediate negative implications.

Positives

• The equity award aligns the director's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment to the company's success.

Future Outlook

The vesting of the restricted stock is contingent upon continued service as a director and the timing of the next annual meeting.

Industry Context

Equity awards are a common form of compensation for directors of publicly traded companies, aligning their interests with those of shareholders and incentivizing long-term value creation.

Comparison to Industry Standards

• Director compensation packages, including equity awards, vary significantly across the REIT sector depending on company size, performance, and governance practices.
• Companies like Realty Income (O) and Prologis (PLD) also utilize equity-based compensation for their directors, often with similar vesting schedules tied to service and company performance.
• The size of the equity award is within a reasonable range compared to similar REITs, but a detailed analysis of the overall compensation package would be needed for a complete assessment.

Stakeholder Impact

• The equity award aligns the director's interests with those of the shareholders, potentially leading to better decision-making.
• The vesting schedule encourages long-term commitment to the company's success, which could benefit all stakeholders.

Key Dates