Form 4: FICO Director David A. Rey Reports Stock Option Grant and RSU Vesting

Director David A. Rey reports transactions involving Fair Isaac Corp (FICO) stock, including the vesting of restricted stock units and the grant of stock options.

Summary

• On March 5, 2025, Director David A. Rey executed transactions related to Fair Isaac Corp (FICO) stock.
• These transactions included the vesting of 128 restricted stock units (RSUs) which converted into 128 shares of common stock.
• Rey also received grants of non-qualified stock options: 30 options and 204 options.
• The options are exercisable beginning March 5, 2025, and expire on March 4, 2032.
• Additionally, 94 restricted stock units were granted, vesting at the 2026 Annual Shareholder Meeting (ASM).

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The transactions are routine and reflect standard compensation practices. The director's participation in the stock option program suggests confidence in the company's future.

Positives

• The grant of stock options and RSUs to a director aligns their interests with those of shareholders, incentivizing them to work towards the company's success.
• The director's election to take a portion of his annual cash retainer in the form of stock options demonstrates confidence in the company's future performance.

Future Outlook

The grant of RSUs vesting at the 2026 Annual Shareholder Meeting suggests continued board service and alignment with long-term shareholder value.

Management Comments

• The reporting person has elected to take a portion of his annual cash retainer in the form of stock options pursuant to the Corporation's Compensation Program for Non-Employee Directors.

Industry Context

Stock option and RSU grants are common compensation practices for directors in publicly traded companies, aligning their interests with shareholders and incentivizing long-term value creation.

Comparison to Industry Standards

• Director compensation packages typically include a mix of cash retainers, stock options, and restricted stock units.
• The specific amounts and vesting schedules vary depending on the company's size, industry, and performance.
• Comparing FICO's director compensation to that of peer companies in the financial technology sector would provide a more comprehensive assessment.

Stakeholder Impact

• The transactions have a minor positive impact on shareholders by aligning director interests with long-term value creation.
• The stock option program may have a minor dilutive effect on existing shareholders.

Key Dates