Form 4: Encore Capital Group Director Wendy Hannam Receives Equity Grant Valued at Over $150,000

Encore Capital Group Inc. Director Wendy Hannam was granted 4,066 deferred stock units as compensation for her board service, valued at $38.12 per unit, increasing her beneficial ownership to 42,849 shares.

Summary

• Wendy Hannam, a Director of Encore Capital Group Inc. (ECPG), acquired 4,066 shares of common stock.
• The transaction occurred on June 13, 2025, at a price of $38.12 per share.
• The acquisition was a grant of deferred stock units for her service on the Board of Directors.
• These deferred stock units were granted under the terms of a non-employee director deferred compensation plan, established under the 2017 Incentive Award Plan.
• The deferred stock units will convert into shares of Encore common stock on a one-for-one basis upon distribution.
• Distribution of shares will occur within 10 business days following the date the reporting person is no longer a member of the Board of Directors.
• Following this transaction, Ms. Hannam's beneficial ownership of Encore Capital Group common stock increased to 42,849 shares.

Sentiment

Score: 6

Explanation: Slightly positive, as it indicates routine compensation and aligns director interests with shareholders, without any negative implications.

Positives

• The grant of deferred stock units to Director Wendy Hannam aligns her interests directly with those of shareholders, as her compensation is tied to the company's equity performance.
• This transaction is part of a pre-existing, established compensation plan (2017 Incentive Award Plan), indicating a structured and transparent approach to director remuneration.

Future Outlook

The deferred stock units granted to Director Wendy Hannam will convert into shares of Encore common stock on a one-for-one basis. The distribution of these shares is scheduled to occur within 10 business days after Ms. Hannam ceases to be a member of the Board of Directors.

Industry Context

The grant of equity-based compensation, such as deferred stock units, to non-employee directors is a common practice across various industries, including financial services. This method is widely used to align the interests of board members with long-term shareholder value creation.

Comparison to Industry Standards

• The practice of compensating non-employee directors with equity, specifically deferred stock units, is a standard corporate governance practice observed in publicly traded companies globally, including those in the financial services sector like Encore Capital Group.
• Companies such as JPMorgan Chase & Co., Bank of America, and other large financial institutions frequently utilize similar equity-based compensation plans for their independent directors to foster long-term alignment and retention.

Related Party Transactions

• The acquisition of deferred stock units by Wendy Hannam, a Director of Encore Capital Group, constitutes a related party transaction as it involves compensation from the company to a member of its board.

Stakeholder Impact

• Shareholders: The grant aligns the director's financial interests with the long-term performance of the company, potentially benefiting shareholders through improved governance and strategic decisions.
• Employees: No direct impact on employees is indicated by this filing.

Next Steps

• Conversion of deferred stock units into common stock shares upon the reporting person's departure from the Board of Directors, to occur within 10 business days of that event.

Key Dates

Keywords

Encore Capital Group, ECPG, SEC Form 4, Insider Transaction, Director Compensation, Equity Grant, Deferred Stock Units, Corporate Governance, Financial Services