Form 4: Fair Isaac Corp Executive Awarded Performance Share Units

Mark R. Scadina, EVP, Gen. Counsel & Sec. of Fair Isaac Corp, was granted 3,382 performance share units based on the achievement of certain performance metrics.

Summary

• Mark R. Scadina, an executive at Fair Isaac Corp (FICO), received 3,382 performance share units.
• These units were awarded based on the achievement of certain performance metrics as determined by the Leadership Development and Compensation Committee.
• Each performance share unit represents the right to receive one share of Fair Isaac common stock, contingent upon continued employment.
• The units vest in three equal annual installments starting on December 9, 2024, with one share delivered for each vested unit.

Sentiment

Score: 7

Explanation: The document reflects a positive event for the executive and indicates the company is meeting performance goals, but it is a routine disclosure.

Positives

• The award of performance share units indicates that the company is meeting its performance goals.
• The vesting schedule encourages continued employment of the executive.

Risks

• The value of the performance share units is tied to the company's stock price, which can fluctuate.
• The executive must remain employed to receive the shares.

Future Outlook

The executive will receive shares of Fair Isaac common stock as the performance share units vest over the next three years, contingent on continued employment.

Industry Context

This type of equity-based compensation is common for executives in publicly traded companies to align their interests with those of shareholders and incentivize performance.

Comparison to Industry Standards

• Performance-based equity awards are a standard practice in executive compensation across various industries, including technology and finance.
• Companies like Oracle, SAP, and Salesforce also use similar performance-based equity awards to incentivize their executives.
• The vesting schedule of three years is also a common practice to ensure long-term commitment from the executive.

Stakeholder Impact

• Shareholders may view this as a positive sign that the company is meeting its performance goals.
• Employees may see this as a positive sign of the company's commitment to rewarding performance.

Next Steps

• The performance share units will vest in three equal annual installments starting on December 9, 2024.
• Shares will be delivered to the executive as the units vest.

Key Dates

Keywords

performance share units, executive compensation, stock awards, Fair Isaac Corp, FICO, vesting, equity