Form 4: Chatham Lodging Trust Director Receives Share Grant as Part of 2024 Compensation

Ethel Isaacs Williams, a director at Chatham Lodging Trust, received 8,754 common shares as part of her 2024 board compensation.

Summary

• Ethel Isaacs Williams, a director of Chatham Lodging Trust, received 8,754 common shares on January 15, 2025.
• This share grant is part of her compensation for serving on the board of trustees in 2024.
• The per-share value was calculated using the average closing price of the company's common shares on the New York Stock Exchange for the last ten trading days of 2024, resulting in a price of $9.14 per share.
• Following this transaction, Ms. Williams beneficially owns 25,463 common shares.

Sentiment

Score: 7

Explanation: The document reflects a routine compensation practice, which is generally positive for aligning director interests with shareholders. There are no negative implications.

Positives

• The share grant aligns director compensation with company performance.
• The use of a ten-day average closing price provides a fair valuation for the shares.

Management Comments

• The share grant comprises the share-based portion of the Company's previously disclosed annual compensation to its trustees for fiscal year 2024.

Industry Context

This type of share-based compensation is common practice for board members in publicly traded companies, aligning their interests with those of shareholders.

Comparison to Industry Standards

• Share-based compensation for board members is a standard practice across the real estate investment trust (REIT) industry, similar to companies like Host Hotels & Resorts (HST) and Park Hotels & Resorts (PK).
• The use of a trailing average price for valuation is also a common method to mitigate short-term price fluctuations, similar to how other REITs value equity grants.

Stakeholder Impact

• The share grant increases the alignment of interests between the director and shareholders.
• The transaction has a minor dilutive effect on existing shareholders.

Key Dates

Keywords

Chatham Lodging Trust, Director Compensation, Share Grant, Board of Trustees, Ethel Isaacs Williams, CLDT, SEC Form 4