Form 4: EPLUS CEO Mark Marron Receives Significant Restricted Stock Grant as Long-Term Incentive

EPLUS Inc. CEO Mark P. Marron was granted 30,219 shares of restricted common stock as part of the company's long-term incentive plan, aligning executive interests with shareholder value.

Summary

• On June 10, 2025, Mark P. Marron, Chief Executive Officer and Director of ePlus inc. (PLUS), was granted a restricted stock award.
• The award consists of 30,219 shares of ePlus common stock.
• The shares were granted by the Company's Compensation Committee under the 2021 Employee Long-Term Incentive Plan.
• The restricted shares are subject to a three-year restriction period.
• One-third of the shares will vest on each of the next three annual anniversaries of the grant date.
• Under certain circumstances, the restrictions may lapse, or the shares may be forfeited and transferred back to the Company.
• Following this transaction, Mr. Marron directly beneficially owns 95,478 shares and indirectly owns 124,663 shares through the Mark P. Marron Trust, totaling 220,141 shares.

Sentiment

Score: 7

Explanation: The grant of restricted stock to the CEO is generally positive as it aligns management's interests with shareholders and is a standard practice for executive retention and motivation. It does not indicate any immediate negative operational or financial issues.

Positives

• The grant of restricted stock aligns the interests of CEO Mark P. Marron with those of the shareholders, as the value of the award is tied to the company's stock performance.
• This is a standard long-term incentive mechanism, indicating a commitment to retaining and motivating key executives.
• The vesting schedule encourages long-term performance and commitment from the CEO over a three-year period.

Risks

• The restricted shares are subject to forfeiture and transfer back to the Company under certain circumstances, as described in the 2021 Employee Long-Term Incentive Plan.

Future Outlook

The restricted stock award is designed to incentivize long-term performance, with shares vesting over the next three years, aligning the CEO's future compensation with the company's sustained success.

Management Comments

• Mr. Marron, an executive of ePlus inc., was granted a restricted stock award consisting of 30,219 shares of common stock.
• The Restricted Shares were granted by the Company's Compensation Committee, pursuant to the Company's 2021 Employee Long-Term Incentive Plan.
• The Restricted Shares are subject to a restriction period of three years, with one-third of the shares vesting on each of the next three annual anniversaries of the grant.

Industry Context

The grant of restricted stock to a Chief Executive Officer is a common practice in the technology and IT solutions industry, serving as a key component of executive compensation packages designed to foster long-term commitment and align management incentives with shareholder returns.

Comparison to Industry Standards

• This restricted stock grant aligns with common industry practices for executive long-term incentive compensation, which typically involve equity awards that vest over several years.
• Companies like CDW Corporation, Insight Enterprises, and Presidio often utilize similar equity-based compensation structures to retain top talent and incentivize performance, making ePlus's approach consistent with its peers in the IT solutions and services sector.

Corporate Governance

Related Party Transactions

• Shares are indirectly held in the Mark P. Marron Trust, a revocable trust where the reporting person and his spouse are the sole trustees and beneficiaries, constituting a related party transaction.

Stakeholder Impact

• Shareholders: The grant aims to align the CEO's long-term interests with shareholder value, potentially leading to improved company performance.
• Employees: The grant is part of an 'Employee Long-Term Incentive Plan', suggesting a broader framework for employee motivation, though this specific grant is for the CEO.

Next Steps

• Vesting of one-third of the restricted shares on each of the next three annual anniversaries of June 10, 2025.

Key Dates

Keywords

EPLUS, PLUS, Mark P. Marron, Restricted Stock Award, CEO, Long-Term Incentive Plan, Executive Compensation, SEC Form 4, Insider Transaction, Corporate Governance