Form 4: EPAM Systems Executive Balazs Fejes Reports Stock Transactions

Balazs Fejes, EVP/Co-Head of Global Business at EPAM Systems, reports the acquisition and disposal of EPAM common stock and stock options related to vesting restricted stock units and tax obligations.

Summary

• On March 15, 2024, Balazs Fejes, an executive at EPAM Systems, engaged in several transactions involving EPAM common stock.
• A total of 1,166 shares were disposed of to cover tax withholding requirements related to vesting restricted stock units at a price of $302.24 per share.
• Fejes also acquired 5,020 restricted stock units, which will vest in equal installments on March 15 of 2025, 2026, 2027, and 2028.
• Additionally, Fejes acquired options to purchase 9,063 shares of EPAM common stock at an exercise price of $298.89, which will become exercisable in equal installments on March 15 of 2025, 2026, 2027, and 2028.
• Following these transactions, Fejes directly owns 17,186 shares of EPAM common stock and options to purchase 9,063 shares.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transactions are routine and related to executive compensation. There is no indication of unusual activity or concern.

Positives

• The acquisition of restricted stock units and stock options indicates a long-term commitment to EPAM Systems by the executive.
• The vesting schedule of the restricted stock units and stock options incentivizes continued performance over the next four years.

Future Outlook

The executive's holdings will increase as the restricted stock units and stock options vest over the next four years, contingent on continued employment and achievement of any performance-based conditions.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies and are often related to compensation packages and tax planning. These transactions are closely monitored by investors for insights into management's confidence in the company's future prospects.

Comparison to Industry Standards

• Executive compensation packages in the IT services industry, which includes companies like Accenture, Tata Consultancy Services, and Infosys, often include a mix of salary, bonuses, stock options, and restricted stock units.
• The vesting schedules for restricted stock units and stock options are typically structured to align executive interests with long-term shareholder value, often vesting over a period of 3-5 years.
• The specific terms of these packages, such as the exercise price of stock options and the vesting schedule of restricted stock units, can vary depending on the company's performance, industry benchmarks, and individual executive contributions.

Stakeholder Impact

• The transactions have a minimal direct impact on stakeholders.
• They reflect standard executive compensation practices and do not indicate any significant changes in the company's operations or financial condition.

Key Dates