Form 4: Crocs EVP, Chief Financial Officer, Susan L. Healy, Reports Acquisition of Restricted Stock Units

Susan L. Healy, EVP and CFO of Crocs, Inc., reports the acquisition of 21,652 restricted stock units (RSUs) under the company's 2020 Equity Incentive Plan.

Summary

• On June 3, 2024, Susan L. Healy, the EVP and Chief Financial Officer of Crocs, Inc., acquired 21,652 restricted stock units (RSUs).
• These RSUs were granted under the issuer's 2020 Equity Incentive Plan.
• Each RSU represents the contingent right to receive one share of Crocs' common stock.
• 4,332 of the RSUs vest in three equal annual installments beginning on June 3, 2025.
• Up to 8,660 of the RSUs vest in three equal annual installments beginning on a date in 2025 when the compensation committee certifies certain performance metrics.
• Up to 8,660 of the RSUs vest on a date in 2027 when the compensation committee certifies certain performance metrics.
• Vesting is contingent upon the reporting person's continued employment with the issuer as of each applicable vesting date.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating confidence in the company's future performance. The vesting conditions suggest a positive outlook, but the value is tied to stock performance.

Positives

• The grant of RSUs aligns the executive's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the executive.

Risks

• The value of the RSUs is dependent on the future performance of Crocs' stock.
• Failure to meet performance metrics could result in forfeiture of some RSUs.
• Termination of employment before vesting dates would result in forfeiture of unvested RSUs.

Future Outlook

The vesting of the RSUs is contingent upon continued employment and, for some units, the achievement of certain performance metrics, suggesting an expectation of continued growth and profitability for Crocs.

Industry Context

The granting of stock-based compensation is a common practice in the industry to incentivize executives and align their interests with those of shareholders. This grant is consistent with standard executive compensation practices.

Comparison to Industry Standards

• Stock-based compensation is a common practice among publicly traded companies to align executive incentives with shareholder value.
• Companies like Nike, Adidas, and Under Armour also utilize similar equity-based compensation plans for their executives.
• The vesting schedules and performance metrics associated with these grants are typically designed to incentivize long-term growth and profitability.

Stakeholder Impact

• The RSU grant aligns the executive's interests with those of shareholders, potentially leading to increased shareholder value.
• The vesting schedule incentivizes the executive to remain with the company, providing stability and continuity.

Key Dates