Form 4: Chipotle Director Matt Carey Receives Stock Grant as Compensation

Director Matt Carey received 67 shares of Chipotle stock as part of a restricted stock unit (RSU) grant for his service as a director from June 2024 through May 2025.

Summary

• Matt Carey, a director of Chipotle Mexican Grill, Inc., received 67 shares of common stock on June 6, 2024.
• The shares were granted as restricted stock units (RSUs) under the company's 2022 Stock Incentive Plan.
• These RSUs were compensation for his service as a director from June 2024 through May 2025.
• The RSUs vested fully on the grant date and were settled in shares on a one-for-one basis.
• Following the transaction, Carey directly owns 1,113 shares of Chipotle common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine compensation practice, indicating stability and alignment of interests. It's a neutral to slightly positive event.

Positives

• The grant of RSUs aligns the director's interests with the company's performance over the service period.
• The immediate vesting of the RSUs provides immediate value to the director.

Industry Context

This type of stock grant is a common practice for compensating directors of publicly traded companies, aligning their interests with those of shareholders.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash and equity.
• Equity grants, such as RSUs, are designed to incentivize long-term value creation.
• The size and vesting schedule of equity grants vary depending on the company's size, industry, and compensation philosophy.
• Comparable companies like McDonald's and Starbucks also utilize equity-based compensation for their directors.

Stakeholder Impact

• The stock grant aligns the director's interests with those of shareholders, incentivizing value creation.
• The grant has a minimal impact on employees, customers, suppliers, and creditors.

Key Dates