Form 4: EPAM Executive Reports RSU Grant, Tax Withholding

EPAM Systems' SVP & Chief People Officer, Lawrence F. Solomon, reported the acquisition of 11,370 restricted stock units and the disposition of 1,581 shares for tax withholding purposes.

Summary

• Lawrence F. Solomon, SVP & Chief People Officer of EPAM Systems, Inc. (EPAM), reported transactions on March 15, 2026.
• Acquired 11,370 restricted stock units (RSUs) with a grant price of $0.
• Disposed of a total of 1,581 shares of EPAM Common Stock at a price of $137.14 per share.
• These dispositions were for tax withholding requirements arising from the vesting of previously granted restricted stock units.
• Following these transactions, Mr. Solomon's direct beneficial ownership of EPAM Common Stock is 30,234.091 shares.
• The newly acquired 11,370 restricted stock units are scheduled to vest as to 25% of the shares on March 15, 2027, 2028, 2029, and 2030.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive event. While there's a disposition of shares, it's for tax purposes, and the significant RSU grant reinforces executive alignment with long-term company performance.

Positives

• The grant of 11,370 restricted stock units aligns the executive's long-term interests with shareholder value, indicating continued commitment to the company.
• Restricted stock units are a common and effective incentive mechanism for retaining key management personnel.

Negatives

• The disposition of 1,581 shares, while for tax purposes, represents a reduction in direct share ownership, though it is a standard practice for RSU vesting.

Future Outlook

The future outlook includes the scheduled vesting of 11,370 restricted stock units in four equal tranches on March 15, 2027, 2028, 2029, and 2030, providing a long-term incentive structure for the executive.

Industry Context

StockSavvy.ai notes that RSU grants with multi-year vesting schedules are a standard and widely adopted practice in the technology and IT services industry for executive compensation. This approach effectively aligns the interests of senior management with the long-term performance and shareholder value creation of the company, a common strategy among peers.

Comparison to Industry Standards

• The grant of restricted stock units with a four-year vesting schedule is consistent with executive compensation practices observed at leading IT consulting and software development firms globally.
• Companies such as Accenture, Cognizant, and Globant frequently utilize similar long-term incentive plans to retain key talent and motivate performance over extended periods.
• The tax withholding mechanism for RSU vesting is also a standard operational procedure across the industry, ensuring compliance with tax obligations upon the conversion of restricted stock units into shares.

Stakeholder Impact

• Shareholders: The RSU grant aligns executive incentives with long-term shareholder value creation, potentially fostering sustained growth and performance.

Next Steps

• The vesting of 25% of the 11,370 restricted stock units on March 15, 2027.
• Subsequent vesting of 25% of the restricted stock units on March 15, 2028, 2029, and 2030.

Key Dates

Recommendation

This Form 4 reports a routine executive compensation event involving an RSU grant and tax-related share withholding. Such transactions are standard and do not typically indicate a fundamental change in the company's operational or financial outlook, thus not warranting a change in investment recommendation based solely on this filing.

Keywords

EPAM, Form 4, Insider Transaction, Restricted Stock Units, RSU Grant, Executive Compensation, Tax Withholding, Lawrence F. Solomon, Stock Grant