Form 4: FactSet CTO Katherine M. Stepp Reports Stock Transactions

Katherine M. Stepp, Chief Technology Officer of FactSet Research Systems Inc., reports acquisition and disposal of company stock related to vesting of performance share units and tax obligations.

Summary

• On November 1, 2024, Katherine M. Stepp, the Chief Technology Officer of FactSet Research Systems Inc., acquired 317 shares of common stock upon the vesting of performance share units (PSUs).
• These PSUs were granted on November 1, 2021, and each converted into 1.275 shares of common stock based on FactSet's performance over a three-year period.
• The performance was measured against adjusted cumulative operating earnings and adjusted cumulative revenues.
• Also on November 1, 2024, 147 shares were withheld to cover tax obligations related to the vesting of these PSUs.
• Stepp also acquired 3,569 employee stock options with an exercise price of $458.8, vesting 20% annually starting November 1, 2024, and expiring on November 1, 2034.
• Following these transactions, Stepp directly owns 857.4217 shares of common stock and 3,569 derivative securities.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The filing primarily reflects routine transactions related to executive compensation. The vesting of PSUs suggests the company met certain performance targets, which is mildly positive.

Positives

• The vesting of performance share units indicates that FactSet met certain performance goals related to adjusted cumulative operating earnings and adjusted cumulative revenues.

Industry Context

Form 4 filings are standard practice and provide transparency into the transactions of company insiders, which can be an indicator of management's confidence in the company's performance and future prospects.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded companies to align management's interests with those of shareholders.
• The vesting schedule of the options (20% annually over five years) is a typical vesting arrangement.
• The performance metrics used for the PSUs (adjusted cumulative operating earnings and adjusted cumulative revenues) are standard financial measures used to evaluate company performance.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they reflect standard executive compensation practices.
• Employees holding similar equity grants may be interested in the performance metrics and vesting schedules.

Key Dates