Form 4: Fastly Executive Earns Performance-Based Stock Awards

Fastly's President of Go to Market, Scott R. Lovett, acquired 522,795 shares of Class A Common Stock through performance-based restricted stock unit awards.

Summary

• Scott R. Lovett, President, Go to Market at Fastly, Inc. (FSLY), acquired a total of 522,795 shares of Class A Common Stock.
• The acquisition occurred on February 28, 2026, at a price of $0 per share, indicating these are equity awards rather than open market purchases.
• These shares represent performance-based restricted stock unit awards (PRSUs) earned based on the achievement of pre-established performance goals during Fastly's fiscal year 2025.
• Following these transactions, Scott R. Lovett beneficially owns 1,518,359 shares of Class A Common Stock.
• 33% of the PRSUs vested on the transaction date (February 28, 2026).
• The remaining PRSUs will vest in quarterly installments of 8.375% on May 28, August 28, November 28, and February 28, subject to continued service.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, reflecting the executive's continued commitment and alignment with company performance, which is generally favorable for shareholder confidence.

Positives

• The acquisition of performance-based restricted stock units aligns the executive's long-term interests with those of shareholders.
• The earning of these awards indicates the achievement of pre-established performance goals for fiscal year 2025, suggesting positive operational performance.

Risks

• The vesting of the remaining PRSUs is contingent upon Scott R. Lovett's continued service with Fastly, Inc., posing a forfeiture risk if employment ceases.

Future Outlook

The future outlook for Scott R. Lovett's equity compensation includes continued quarterly vesting of the remaining performance-based restricted stock units, contingent on his ongoing service to Fastly, Inc. through each vesting date.

Industry Context

StockSavvy.ai notes that the granting of performance-based restricted stock units is a standard practice in the technology industry for executive compensation, designed to incentivize long-term performance and align management interests with shareholder value creation. This type of compensation structure is prevalent among Fastly's peers in the cloud and edge computing sectors.

Comparison to Industry Standards

• Performance-based equity awards are a common component of executive compensation packages across the technology sector, including companies like Cloudflare (NET), Akamai Technologies (AKAM), and Amazon Web Services (AMZN).
• The structure of initial vesting followed by quarterly installments is a typical vesting schedule designed to retain executives and encourage sustained performance.
• The use of PRSUs, tied to specific performance goals, is considered a best practice in corporate governance, linking executive pay directly to company achievements.

Stakeholder Impact

• Shareholders: The grant of performance-based equity aligns the executive's financial incentives with the company's long-term performance, potentially benefiting shareholder value.
• Employees: The executive's continued service and vested interest may contribute to leadership stability and strategic direction.

Next Steps

• Future quarterly vesting of the remaining 8.375% of PRSUs on May 28, August 28, November 28, and February 28, subject to continued service.

Key Dates

Keywords

Fastly, FSLY, Scott R. Lovett, Form 4, Insider Transaction, Restricted Stock Units, Performance Awards, Executive Compensation, Equity Grant