Form 4: FactSet Executive Christopher R. Ellis Reports Stock Transactions

Christopher R. Ellis, an EVP at FactSet Research Systems, reports the vesting of performance share units and subsequent tax withholding, along with the grant of new employee stock options.

Summary

• On November 1, 2024, Christopher R. Ellis, an EVP at FactSet Research Systems, acquired 828 shares of common stock upon the vesting of performance share units (PSUs).
• These PSUs were granted on November 1, 2021, and converted into 1.275 shares each based on FactSet's performance over a three-year period ending August 31, 2024.
• The performance was measured against adjusted cumulative operating earnings and adjusted cumulative revenues.
• 384 shares were withheld to cover taxes related to the vesting of these PSUs at a price of $458.8.
• Ellis also acquired 2,254 employee stock options with an exercise price of $458.8, vesting annually over five years, expiring on November 1, 2034.
• Following these transactions, Ellis directly owns 23,958.6867 shares of common stock and indirectly owns 450 shares through a spouse.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and the achievement of performance goals, suggesting a moderately positive outlook.

Positives

• The vesting of performance share units indicates that FactSet met certain performance goals related to adjusted cumulative operating earnings and revenues.
• The grant of new employee stock options could incentivize continued strong performance from the executive.

Negatives

• The withholding of 384 shares for taxes represents a cost to the executive, although it is a standard part of equity compensation.

Future Outlook

The document does not contain explicit forward-looking statements, but the vesting of PSUs based on performance suggests an expectation of continued strong performance.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies and are closely watched by investors for insights into management's confidence in the company's future prospects. The vesting of PSUs indicates that FactSet achieved certain performance targets, which could be viewed positively by the market.

Comparison to Industry Standards

• Equity compensation practices vary across the financial data and analytics industry.
• Companies like Bloomberg L.P. (private), S&P Global, and MSCI Inc. also utilize stock options and performance-based equity awards to incentivize executives.
• The specific terms of these awards, such as vesting schedules and performance metrics, can differ significantly based on company-specific goals and industry benchmarks.
• FactSet's use of adjusted cumulative operating earnings and revenues as performance metrics is a common practice in the industry, as these metrics are closely tied to the company's financial performance.

Stakeholder Impact

• Shareholders may view the vesting of PSUs positively, as it indicates that the company met certain performance targets.
• Employees may be motivated by the grant of new stock options, which aligns their interests with those of shareholders.

Key Dates