Form 4: EPLUS INC: Officer Darren S. Raiguel Reports Stock Award and Tax Withholdings

Darren S. Raiguel, Chief Operating Officer of EPLUS INC, reports the acquisition of 18,574 shares of common stock as a restricted stock award, along with disposals to cover tax liabilities.

Summary

• On June 14, 2024, Darren S. Raiguel, Chief Operating Officer of EPLUS INC, reported transactions related to the company's stock.
• Raiguel was granted a restricted stock award of 18,574 shares of common stock under the company's 2021 Employee Long-Term Incentive Plan.
• These shares are subject to a three-year restriction period, with one-third vesting annually.
• Additionally, shares were withheld to cover tax liabilities from the vesting of previous restricted stock awards.
• 2,742 shares were withheld on June 14, 2024, at a price of $73.46, related to the vesting of an award from June 14, 2023.
• 3,914 shares were withheld on June 15, 2024, at a price of $72.68, related to the vesting of an award from June 15, 2021.
• Following these transactions, Raiguel directly owns 58,041 shares and indirectly owns 33,123 shares through a revocable trust.

Sentiment

Score: 6

Explanation: The document is neutral in sentiment. It simply reports transactions related to executive compensation. There are no explicit positive or negative implications for the company's performance.

Positives

• The grant of restricted stock to the COO aligns his interests with the long-term performance of the company.
• The restricted stock award is part of the company's 2021 Employee Long-Term Incentive Plan, suggesting a commitment to employee incentivization.

Future Outlook

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

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies. It reflects the compensation structure for executives and their alignment with shareholder interests through equity ownership.

Comparison to Industry Standards

• Restricted stock awards are a common form of executive compensation in the technology industry, similar to companies like CDW Corporation and Insight Enterprises.
• The vesting schedule of one-third annually over three years is a standard practice for these types of awards.
• Tax withholding through share disposal is also a typical procedure to cover tax obligations arising from vesting events.

Stakeholder Impact

• Shareholders may view the restricted stock award as a positive incentive for the COO to drive long-term value.
• Employees may see the award as part of a broader compensation strategy that rewards performance.

Key Dates