Form 4: Cardiff Lexington CFO Receives Restricted Stock Award

Cardiff Lexington's Chief Financial Officer, Matthew T. Shafer, was granted 62,500 shares of common stock under the company's 2024 Equity Incentive Plan.

Summary

• Matthew T. Shafer, Chief Financial Officer of Cardiff Lexington Corp (CDIX), received a restricted stock award of 62,500 shares of Common Stock.
• The grant occurred on January 13, 2026, as part of the Issuer's 2024 Equity Incentive Plan.
• 31,250 shares of the award vested immediately on the grant date.
• An additional 15,625 shares are scheduled to vest on January 2, 2027.
• The final 15,625 shares will vest on January 2, 2028.
• All future vesting is contingent upon Mr. Shafer's continuous service with the company.
• Following this transaction, Mr. Shafer beneficially owns a total of 74,168 shares of Common Stock.

Sentiment

Score: 7

Explanation: The filing reports a routine, positive event for the executive and a standard practice for corporate governance, aligning executive interests with shareholders. No negative information is present.

Positives

• The grant of 62,500 restricted shares to the Chief Financial Officer aligns management's long-term interests with those of shareholders.
• The award is part of the company's 2024 Equity Incentive Plan, indicating a structured and formal approach to executive compensation.
• Immediate vesting of 31,250 shares provides immediate equity ownership and incentive.

Future Outlook

The vesting schedule for the restricted stock award extends through January 2, 2028, indicating an expectation of continued service from the Chief Financial Officer and a long-term incentive structure designed to retain key talent.

Management Comments

• The reporting person was granted a restricted stock award for 62,500 shares of Common Stock under the Issuer's 2024 Equity Incentive Plan.
• Vesting is subject to the Reporting Person's Continuous Service (as defined in the Issuer's 2024 Equity Incentive Plan).

Industry Context

Granting restricted stock awards to key executives like the CFO is a common practice in publicly traded companies. This strategy is widely used across various industries to incentivize long-term performance, retain talent, and align management's interests with those of shareholders.

Comparison to Industry Standards

• Equity-based compensation, such as restricted stock awards with multi-year vesting, is a standard component of executive compensation packages across public companies, including those comparable to Cardiff Lexington Corp.
• The combination of immediate and future vesting tranches is a common mechanism to ensure executive retention and incentivize sustained performance, mirroring practices observed at many publicly traded entities.

Corporate Governance

Stakeholder Impact

• Shareholders: The grant aligns the Chief Financial Officer's long-term interests with shareholder value creation through equity ownership and performance incentives.
• Employees: May signal a commitment to retaining key talent and a structured approach to compensation within the company.

Next Steps

• Vesting of 15,625 shares on January 2, 2027, subject to continuous service.
• Vesting of 15,625 shares on January 2, 2028, subject to continuous service.

Key Dates

Keywords

Cardiff Lexington, CDIX, Form 4, Restricted Stock Award, Equity Incentive Plan, CFO Compensation, Insider Transaction, Executive Compensation, Stock Grant, Beneficial Ownership