Form 4: FactSet CTO Earns Performance Share Units

FactSet's Chief Technology Officer, Katherine M. Stepp, earned 367 Performance Share Units (PSUs) on September 15, 2025, which are scheduled to vest on November 1, 2025.

Summary

• Katherine M. Stepp, Chief Technology Officer (CTO) of FactSet Research Systems Inc. (FDS), was awarded 367 Performance Share Units (PSUs).
• The PSUs were earned on September 15, 2025, following the achievement of specific performance goals, as certified by the Compensation and Talent Committee.
• Each PSU corresponds 1-for-1 with FactSet Common Stock.
• The PSUs are scheduled to vest on November 1, 2025, contingent upon Ms. Stepp's continuous employment with the company until that date.
• The transaction was made pursuant to a Rule 10b5-1 pre-planned contract, instruction, or written plan for the purchase or sale of equity securities.

Sentiment

Score: 7

Explanation: The award of performance share units indicates that the company's performance goals, as set by the Compensation and Talent Committee, have been met, which is a positive signal. It also aligns executive incentives with shareholder value.

Positives

• The award of Performance Share Units indicates that FactSet's performance goals, as determined by the Compensation and Talent Committee, have been met.
• This compensation structure aligns the Chief Technology Officer's long-term incentives directly with shareholder value creation.
• The use of a Rule 10b5-1 plan demonstrates a pre-planned and transparent approach to executive compensation and equity transactions.

Risks

• The vesting of the 367 Performance Share Units is contingent on Katherine M. Stepp remaining continuously employed by FactSet Research Systems Inc. until November 1, 2025.

Future Outlook

The 367 Performance Share Units are scheduled to vest on November 1, 2025, provided the Chief Technology Officer remains continuously employed by FactSet Research Systems Inc. on that date.

Industry Context

Executive compensation through performance-based equity awards like PSUs is a standard practice across industries, particularly in technology and financial services, to incentivize long-term performance and align management interests with shareholder returns.

Comparison to Industry Standards

• Many companies, including peers in the financial data and analytics sector such as S&P Global (SPGI) and MSCI Inc. (MSCI), utilize performance share units as a key component of their executive compensation packages.
• This practice is consistent with market standards for attracting and retaining top talent by linking compensation directly to company performance and shareholder value creation.

Stakeholder Impact

• Shareholders: The award of performance-based equity aligns the interests of the Chief Technology Officer with those of shareholders, potentially encouraging decisions that enhance long-term company value.
• Employees: This transaction highlights the company's executive compensation structure, which can influence morale and retention strategies for key personnel.

Next Steps

• The 367 Performance Share Units are scheduled to vest on November 1, 2025, subject to continuous employment.

Key Dates

Recommendation

This Form 4 filing details a routine executive compensation event (award of PSUs) and does not contain information that would fundamentally alter the investment thesis for FactSet Research Systems Inc. While positive that performance goals were met, it is a standard part of executive incentive plans and not a significant catalyst for a change in stock recommendation.

Keywords

FactSet, FDS, Performance Share Units, PSUs, Executive Compensation, Insider Transaction, CTO, Equity Award, Rule 10b5-1