Form 4: CTO Realty Growth Director Acquires Shares in Lieu of Fees
SEC Form 4 Filing
Christopher J. Drew, a director at CTO Realty Growth, acquired 813 shares of common stock in lieu of his 4th quarter 2024 board and committee retainer fees.
Summary
- Christopher J. Drew, a director at CTO Realty Growth, acquired 813 shares of common stock on January 2, 2025.
- The shares were issued in lieu of his 4th quarter 2024 board retainer fee of $12,500 and committee retainer fees of $3,750.
- The share price used to calculate the number of shares was $19.98050, which is the 20-day trailing average closing price as of the last day of the quarter.
- Following the transaction, Mr. Drew directly owns 16,261 shares of CTO Realty Growth.
Sentiment
Score: 7
Explanation: The document reflects a routine transaction of a director receiving shares in lieu of fees, which is generally viewed as a neutral to slightly positive event. It indicates alignment of interests between the director and shareholders.
Positives
- The acquisition of shares by a director demonstrates alignment of interests with shareholders.
- The use of shares in lieu of cash compensation can be seen as a positive for the company's cash flow.
Industry Context
This is a standard practice for many public companies to compensate directors with shares, aligning their interests with shareholders. This is a common practice in the real estate investment trust (REIT) sector.
Comparison to Industry Standards
- Many REITs use a combination of cash and stock to compensate their board members.
- The practice of using a trailing average share price to determine the number of shares issued is also common to avoid market timing issues.
- Companies like Simon Property Group and American Tower also use similar compensation structures for their directors.
Stakeholder Impact
- Shareholders may view this as a positive sign of director alignment with company performance.
- The company's cash flow is positively impacted by issuing shares instead of cash for director compensation.
Key Dates
| Date | Description |
|---|---|
| 02/27/2019 | Date the Issuer's Non-Employee Director Compensation Policy was adopted by the board of directors. |
| 02/14/2024 | Date the Issuer's Non-Employee Director Compensation Policy was last amended. |
| 01/02/2025 | Date of the share acquisition by Christopher J. Drew. |
| 01/03/2025 | Date of the signature of the report. |
Keywords
CTO Realty Growth, Director Share Acquisition, Form 4, Insider Trading, Christopher J. Drew, Board Retainer Fees, Stock Compensation
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