Form 4: Douglas Elliman Inc. Director Receives Restricted Stock Award

David Chene, a director of Douglas Elliman Inc., received 58,975 shares of restricted common stock for his board service, which vests in two equal annual installments.

Summary

• On July 31, 2024, Douglas Elliman Inc. granted 58,975 shares of restricted common stock to David Chene, a member of the Board of Directors, for his service on the Board.
• Mr. Chene holds these shares for the benefit of KLIM Delta HQC3 LP and KLCP Fund III (EU) Master AIV LP.
• The restricted stock award was granted under the Issuer's 2021 Management Incentive Plan.
• The shares vest in two equal annual installments on July 31, 2025, and July 31, 2026, contingent upon Mr. Chene's continued service.
• Kennedy Lewis GP III LLC is the general partner of each of the Funds, and Kennedy Lewis Investment Holdings II LLC is the managing member of Kennedy Lewis GP III.
• David Chene and Darren Richman are the effective control persons of Holdings II.
• Each of Kennedy Lewis GP III, Holdings II, David Chene and Darren Richman may be deemed to exercise voting and investment power over the securities held by the Funds due to their relationship with the Funds.

Sentiment

Score: 7

Explanation: The document reflects a standard compensation practice for a board member, indicating stability and alignment of interests. The sentiment is neutral to slightly positive.

Positives

• The grant of restricted stock aligns the director's interests with those of the company and its shareholders.
• The vesting schedule encourages continued service and commitment from the director.

Future Outlook

The vesting of the restricted stock is contingent upon Mr. Chene's continued service, indicating an expectation of his ongoing involvement with the company.

Industry Context

Granting restricted stock to board members is a common practice to align their interests with the long-term performance of the company. This is especially prevalent in publicly traded companies like Douglas Elliman Inc.

Comparison to Industry Standards

• Many publicly traded companies, such as Compass, RE/MAX, and Anywhere Real Estate, use stock-based compensation for their board members.
• The amount of stock granted is generally in line with industry standards for director compensation, which varies based on company size and performance.
• The vesting schedule is also typical, encouraging long-term commitment from the director.

Stakeholder Impact

• Shareholders may view the grant of restricted stock positively as it aligns the director's interests with the company's long-term success.
• Employees may see this as a sign of stability and commitment from the board.
• The impact on customers, suppliers, and creditors is likely to be minimal.

Key Dates