Form 4: EPAM CEO Balazs Fejes Receives New RSU Grant, Covers Taxes

EPAM Systems CEO Balazs Fejes reported the acquisition of 26,238 restricted stock units and the disposition of 2,487 shares for tax withholding purposes.

Summary

• Balazs Fejes, CEO, President, and Director of EPAM Systems, Inc., reported transactions on March 15, 2026.
• He acquired 26,238 restricted stock units (RSUs) at a price of $0. These RSUs are scheduled to vest 25% annually on March 15, 2027, 2028, 2029, and 2030.
• Concurrently, Fejes disposed of a total of 2,487 shares of EPAM Common Stock at a price of $137.14 per share.
• These dispositions were made to satisfy tax withholding requirements arising from the vesting of previously granted restricted stock units under the Issuer's Long Term Incentive Plan.
• Following these transactions, Fejes beneficially owns 48,614.091 shares of EPAM Common Stock directly.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, reflecting continued executive alignment with long-term shareholder value through a new RSU grant, despite the routine tax-related share disposition.

Positives

• The acquisition of 26,238 restricted stock units at a $0 price indicates a new equity grant to the CEO, aligning management's interests with long-term shareholder value.
• The vesting schedule extending to 2030 demonstrates a long-term commitment of the CEO to the company's future performance.

Negatives

• The disposition of 2,487 shares, totaling approximately $341,000 (2,487 * $137.14), for tax withholding purposes reduces the CEO's direct beneficial ownership of common stock.

Future Outlook

The newly granted restricted stock units for Balazs Fejes are scheduled to vest in equal annual installments of 25% on March 15, 2027, 2028, 2029, and 2030, indicating a long-term incentive structure tied to future company performance.

Industry Context

StockSavvy.ai notes that equity grants to senior executives like the CEO are a standard practice across the technology and IT services industry. These grants are designed to align executive compensation with long-term shareholder interests and incentivize sustained performance. The vesting schedule extending several years is typical for such long-term incentive plans, aiming to retain key talent and encourage strategic decision-making.

Comparison to Industry Standards

• The grant of restricted stock units (RSUs) to a CEO is a common compensation practice, comparable to similar grants at companies like Accenture (ACN), Cognizant Technology Solutions (CTSH), or Globant (GLOB), which frequently use equity awards to incentivize and retain top executives.
• The four-year vesting schedule (25% annually) is a standard industry practice for long-term incentive plans, similar to those observed in many S&P 500 technology and consulting firms.
• The disposition of shares to cover tax obligations upon RSU vesting is also a routine, non-discretionary event for executives receiving equity compensation, consistent with practices at peer companies.

Related Party Transactions

• The acquisition of restricted stock units is a transaction between the CEO and the company as part of an employee compensation plan.

Stakeholder Impact

• Shareholders: The new RSU grant aligns the CEO's long-term interests with shareholder value creation. The tax-related disposition is a routine event and does not indicate a lack of confidence.
• Employees: The long-term incentive plan for the CEO may signal stability and a clear strategic direction, potentially boosting employee morale.

Next Steps

• 25% of the 26,238 restricted stock units are scheduled to vest on March 15, 2027.
• Subsequent 25% tranches of the restricted stock units are scheduled to vest on March 15, 2028, 2029, and 2030.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation activities—a new RSU grant and tax-related share dispositions from a prior vesting. These transactions are expected and do not provide new fundamental information about the company's operational performance or strategic direction that would warrant a change in investment recommendation. The grant reinforces executive alignment with long-term shareholder interests, which is a positive, but not a catalyst for a "buy" recommendation on its own. Therefore, a "hold" recommendation is appropriate, maintaining current positions while awaiting more substantive financial or operational updates.

Keywords

EPAM Systems, EPAM, Balazs Fejes, CEO, President, Director, Form 4, SEC filing, insider transaction, restricted stock units, RSU, equity grant, tax withholding, beneficial ownership, long-term incentive plan