Form 4: FAT Brands Co-CEO and CFO Kenneth Kuick Amends Stock Options

Kenneth Kuick, Co-CEO and CFO of FAT Brands, Inc., amended stock options on March 18, 2025, involving adjustments to exercise prices.

Summary

• On March 18, 2025, Kenneth Kuick, the Co-CEO and CFO of FAT Brands, Inc., engaged in transactions involving amendments to existing stock options.
• The amendments resulted in a reduction of the exercise price for two sets of outstanding options by $2.599553 per share.
• This was achieved through the deemed cancellation of the 'old' options and the grant of replacement options.
• One set of options, originally granted on April 26, 2023, involved 50,000 shares of Class A Common Stock with an initial exercise price of $5.37.
• The other set of options, originally granted on November 16, 2021, involved 100,000 shares of Class A Common Stock with an initial exercise price of $11.43.
• Following these transactions, Kuick directly owns stock options for 50,000 Class A Common Stock with an exercise price of $2.77 and 100,000 Class A Common Stock with an exercise price of $8.83.
• The options vest in three equal annual installments beginning on the first anniversary of the grant date.

Sentiment

Score: 6

Explanation: The document describes a routine adjustment to executive compensation. It's neither overwhelmingly positive nor negative, but rather a standard corporate practice.

Positives

• The reduction in exercise price could potentially incentivize the executive to improve company performance.

Industry Context

Stock option grants and amendments are common practices in executive compensation, particularly in publicly traded companies like FAT Brands, to align management's interests with those of shareholders.

Comparison to Industry Standards

• Executive compensation packages, including stock options, are typically benchmarked against peer companies in the restaurant and hospitality industry.
• Companies like McDonald's, Restaurant Brands International (owner of Burger King, Tim Hortons, Popeyes), and Domino's Pizza also utilize stock options as part of their executive compensation plans.
• The vesting schedules and exercise prices are often structured to incentivize long-term performance and retention.

Stakeholder Impact

• Shareholders may view the adjusted stock options as an incentive for management to improve company performance.
• Employees may see this as a positive sign of management's commitment to the company's success.

Key Dates

Keywords

FAT Brands, Kenneth Kuick, Stock Options, Amendment, Exercise Price, Class A Common Stock, Co-CEO, CFO