Form 4: Chefs' Warehouse CEO Christopher Pappas Receives Restricted Stock Grant

Christopher Pappas, CEO of Chefs' Warehouse, Inc., was granted 49,842 shares of restricted common stock on March 4, 2024, under the company's equity incentive plan.

Summary

• On March 4, 2024, Christopher Pappas, the President and CEO of Chefs' Warehouse, Inc., received a grant of 49,842 shares of restricted common stock.
• The grant was made under The Chefs' Warehouse, Inc. Amended and Restated 2019 Omnibus Equity Incentive Plan.
• For 29,319 of these shares, the forfeiture restrictions will lapse in one-third increments on the first, second, and third anniversary dates of March 4, 2024.
• The forfeiture restrictions on the remaining 20,523 shares will lapse upon achievement of performance conditions based on the per-share price of the Issuer's common stock.
• Following the transaction, Pappas directly owns 2,406,312 shares of common stock and indirectly owns 290,352 shares through GRATs.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The grant of restricted stock is a standard practice, and the performance-based vesting could align management's interests with shareholders. However, the actual impact depends on the specific performance targets and the company's future performance.

Positives

• The grant of restricted stock aligns the CEO's interests with those of the shareholders.
• The vesting schedule based on both time and performance could incentivize long-term value creation.

Future Outlook

The vesting of the performance-based restricted stock is contingent on the future stock price performance of Chefs' Warehouse, Inc.

Industry Context

Equity grants are a common practice in the restaurant and foodservice distribution industry to incentivize and retain key executives.

Comparison to Industry Standards

• Companies like Sysco and US Foods also utilize equity compensation plans for their executives.
• The specific terms of the grant, such as the vesting schedule and performance metrics, would need to be compared to those of similar companies to assess its competitiveness.

Stakeholder Impact

• Shareholders: The grant aligns the CEO's interests with the company's performance, potentially benefiting shareholders.
• Employees: The equity incentive plan may also extend to other employees, incentivizing them to contribute to the company's success.

Key Dates