Form 4: Builders FirstSource Director Acquires Shares in Lieu of Cash Compensation

Director Brett N. Milgrim acquired 179 shares of Builders FirstSource common stock on September 1, 2024, in lieu of cash compensation.

Summary

• On September 1, 2024, Brett N. Milgrim, a director of Builders FirstSource, Inc., acquired 179 shares of common stock.
• The acquisition was made in lieu of cash compensation for services as a director under the company's 2014 Incentive Plan.
• The price per share was $174.
• Following the transaction, Milgrim directly owns 78,202 shares of Builders FirstSource common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects a director increasing their stake in the company, aligning interests with shareholders. It's a routine transaction related to compensation.

Positives

• The acquisition of shares by a director demonstrates confidence in the company.

Industry Context

Directors receiving stock in lieu of cash compensation is a common practice to align their interests with shareholders and conserve company cash.

Comparison to Industry Standards

• Director compensation policies vary across the building materials industry.
• Some companies offer a mix of cash and stock, while others may provide only cash or stock options.
• The specific terms of Builders FirstSource's director compensation policy are outlined in their 2014 Incentive Plan and Amended and Restated Director Compensation Policy, which is similar to other companies such as Home Depot and Lowes.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with theirs.

Key Dates