Form 4: Fair Isaac Executive Nikhil Behl Awarded Performance Share Units

Executive Vice President of Fair Isaac Corporation, Nikhil Behl, was granted 2,368 performance share units based on the achievement of certain performance metrics.

Summary

• Nikhil Behl, an Executive Vice President at Fair Isaac Corporation (FICO), was awarded 2,368 performance share units.
• These units were granted based on the achievement of certain performance metrics as determined by the Leadership Development and Compensation Committee of the Board of Directors.
• Each performance share unit represents the right to receive one share of Fair Isaac common stock, contingent upon continued employment.
• The performance share units will vest in three equal annual installments starting on December 9, 2024.
• One share will be delivered to Mr. Behl for each vested unit as soon as practicable after vesting.

Sentiment

Score: 7

Explanation: The document reflects a positive event for the executive, indicating that performance goals were met. It is a routine part of executive compensation and does not indicate any significant positive or negative impact on the company.

Positives

• The granting of performance share units indicates that Nikhil Behl has met certain performance goals.
• The vesting schedule provides an incentive for continued employment with Fair Isaac Corporation.
• The award aligns executive compensation with company performance.

Risks

• The value of the performance share units is tied to the price of Fair Isaac common stock, which can fluctuate.
• The units are contingent on continued employment, so a change in employment status would impact the vesting.

Future Outlook

The performance share units will vest over the next three years, contingent on continued employment.

Industry Context

The use of performance share units is a common practice in executive compensation to align management interests with shareholder value and company performance.

Comparison to Industry Standards

• Performance-based equity awards are a standard component of executive compensation packages in the technology and financial services industries.
• Companies like Oracle, SAP, and Salesforce also use similar equity-based incentives to motivate and retain key executives.
• The vesting schedule of three years is also typical for these types of awards, aligning with long-term performance goals.

Stakeholder Impact

• Shareholders may view this as a positive sign that executive performance is being rewarded.
• Employees may see this as a positive sign of the company's commitment to rewarding performance.

Next Steps

• The performance share units will vest annually over the next three years.
• Shares will be delivered to Nikhil Behl as soon as practicable after each vesting date.

Key Dates

Keywords

performance share units, executive compensation, stock awards, FICO, Fair Isaac Corporation, Nikhil Behl