Form 4: Fair Isaac Executive Thomas A. Bowers Awarded 2,030 Performance Share Units

Executive Vice President of Fair Isaac Corporation, Thomas A. Bowers, received 2,030 performance share units based on the achievement of certain performance metrics.

Summary

• Thomas A. Bowers, an Executive Vice President at Fair Isaac Corporation (FICO), was granted 2,030 performance share units.
• These units were awarded based on the achievement of specific performance metrics determined by the Leadership Development and Compensation Committee on November 14, 2024.
• Each performance share unit represents the right to receive one share of Fair Isaac common stock, contingent upon continued employment.
• The units will 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 standard executive compensation practice, indicating positive performance and alignment of interests. The sentiment is positive but not overly so as it is a routine event.

Positives

• The award of performance share units indicates that Thomas A. Bowers has met certain performance goals.
• The vesting schedule provides an incentive for continued employment with Fair Isaac Corporation.

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, meaning they could be forfeited if employment is terminated before vesting.

Future Outlook

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

Industry Context

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

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 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 executives.

Stakeholder Impact

• Shareholders may view this as a positive sign of executive performance and alignment with company goals.
• Employees may see this as a positive example of the company's compensation practices.

Next Steps

• The performance share units will vest annually over the next three years.
• Shares will be delivered to Thomas A. Bowers as the units vest.

Key Dates

Keywords

performance share units, executive compensation, stock awards, FICO, Fair Isaac Corporation, Thomas A. Bowers, vesting