Form 4: EPAM Systems SVP Boris Shnayder Reports Changes in Beneficial Ownership
SEC Form 4
Boris Shnayder, SVP/Co-Head of Global Business at EPAM Systems, reports transactions involving EPAM common stock, including the acquisition of restricted stock units and stock options, as well as shares withheld for tax obligations.
Summary
- On March 15, 2024, Boris Shnayder, SVP/Co-Head of Global Business at EPAM Systems, engaged in transactions involving EPAM common stock.
- A total of 291 shares were withheld by EPAM to cover tax obligations related to the vesting of restricted stock units at a price of $302.24 per share.
- Shnayder acquired 2,064 restricted stock units, which will vest in equal installments on March 15 of 2025, 2026, 2027, and 2028.
- Shnayder also acquired options to purchase 3,726 shares of EPAM common stock at an exercise price of $298.89, vesting in equal installments on March 15 of 2025, 2026, 2027, and 2028.
- Following these transactions, Shnayder directly owns 11,059 shares of EPAM common stock, and holds options for 3,726 shares.
Sentiment
Score: 7
Explanation: The document reflects standard executive compensation practices, which is generally viewed neutrally to positively as it aligns management interests with shareholders. There are no indications of negative performance or concerns.
Positives
- The granting of restricted stock units and stock options to a key executive like Boris Shnayder aligns his interests with the long-term success of EPAM Systems.
- The vesting schedule of the restricted stock units and stock options encourages continued service and commitment from the executive.
Future Outlook
The document outlines the vesting schedule for restricted stock units and stock options, indicating future equity-based compensation for the reporting person.
Industry Context
This filing is a routine disclosure related to executive compensation and equity ownership, common in publicly traded companies like EPAM Systems. It reflects standard practices for incentivizing and retaining key personnel in the IT services industry.
Comparison to Industry Standards
- Equity compensation is a standard practice in the IT services industry to attract and retain top talent.
- Companies like Accenture, Tata Consultancy Services, and Infosys also utilize stock options and restricted stock units as part of their compensation packages for senior executives.
- The vesting schedules and exercise prices are generally aligned with industry norms to incentivize long-term performance and commitment.
Stakeholder Impact
- Shareholders may view the equity grants as a positive sign, aligning management's interests with the company's long-term performance.
- Employees may see the equity grants as a sign of confidence in the company's future.
Key Dates
| Date | Description |
|---|---|
| 03/15/2024 | Date of earliest transaction, including stock withholding, RSU acquisition, and stock option acquisition. |
| 03/15/2025 | First vesting date for 25% of the acquired restricted stock units and stock options. |
| 03/15/2026 | Second vesting date for 25% of the acquired restricted stock units and stock options. |
| 03/15/2027 | Third vesting date for 25% of the acquired restricted stock units and stock options. |
| 03/15/2028 | Final vesting date for 25% of the acquired restricted stock units and stock options. |
| 03/15/2034 | Expiration date of the employee stock options. |
| 03/19/2024 | Date of signature for the Form 4 filing. |
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