Form 4: Churchill Downs Director Douglas Grissom Acquires Restricted Stock Units

Director Douglas Grissom acquired 1,255.06 restricted stock units of Churchill Downs Inc. on April 23, 2024, in connection with his 2024 director service.

Summary

• On April 23, 2024, Douglas C. Grissom, a director of Churchill Downs Inc., acquired 1,255.06 restricted stock units (RSUs).
• These RSUs were granted in connection with his 2024 director service and will vest one year from the grant date.
• Each RSU represents the economic equivalent of one share of Churchill Downs common stock.
• The acquisition price was $0, and the closing price of CHDN common stock on April 23, 2024, was used to determine the number of RSUs granted.
• Following the transaction, Grissom beneficially owns 25,784.73 shares, including RSUs granted for director service and dividends awarded for such units.
• The equivalent shares of common stock related to the vested units will be transferred upon the reporting person's completion of service as a director.

Sentiment

Score: 7

Explanation: The document reflects a standard transaction related to director compensation, which is generally viewed neutrally. The acquisition of RSUs aligns the director's interests with shareholders, which is a positive signal.

Positives

• The acquisition of restricted stock units aligns the director's interests with those of the shareholders.
• The vesting period of one year encourages continued service and commitment to the company.

Future Outlook

The restricted stock units will vest one year from the grant date, contingent on continued service as a director.

Industry Context

Director compensation in the form of restricted stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Many publicly traded companies, such as Penn National Gaming (now PENN Entertainment) and MGM Resorts International, use restricted stock units as part of their director compensation packages.
• The vesting schedules and amounts of RSUs typically vary based on company size, performance, and industry standards.
• Director compensation packages are often benchmarked against peer companies to ensure competitiveness and attract qualified individuals.

Stakeholder Impact

• Shareholders: The acquisition of RSUs by a director can be viewed positively as it aligns their interests with the company's performance.
• Employees: The transaction itself has no direct impact on employees.
• Company: The transaction reflects the company's compensation practices for its directors.

Next Steps

• The restricted stock units will vest one year from the grant date, contingent on continued service as a director.
• The equivalent shares of common stock related to the vested units will be transferred upon the reporting person's completion of service as a director.

Key Dates