Form 4: FAT Brands Director Amends Stock Options, Adjusting Exercise Prices

Mark Elenowitz, a director at FAT Brands, Inc., amended previously granted stock options to reduce the exercise price, resulting in the cancellation of old options and the grant of replacement options.

Summary

• On March 18, 2025, Mark Elenowitz, a director of FAT Brands, Inc., engaged in transactions involving the amendment of existing stock options.
• The amendments reduced the exercise price of two separate stock option grants.
• The first amendment involved options originally granted on May 4, 2023, with an exercise price of $5.55.
• The second amendment involved options originally granted on April 17, 2024, with an exercise price of $7.1.
• The exercise price was reduced by $2.599553 per share for both option grants.
• The amendments resulted in the deemed cancellation of the original options and the grant of replacement options with the adjusted exercise prices.
• Following these transactions, Elenowitz holds 30,636 options with an exercise price of $2.95 and 30,636 options with an exercise price of $4.5.
• The options vest in three equal annual installments beginning on the first anniversary of the grant date.

Sentiment

Score: 5

Explanation: The document describes a routine transaction related to executive compensation. It is neither particularly positive nor negative.

Positives

• The reduction in exercise price could potentially incentivize the director to improve company performance.
• The director still holds a significant number of options, aligning their interests with shareholders.

Industry Context

Stock option grants and amendments are common practices in corporate governance to incentivize executives and align their interests with those of shareholders. The specific terms and conditions of these grants can vary widely depending on the company's compensation policies and industry practices.

Comparison to Industry Standards

• Stock option grants are a common form of executive compensation, with vesting schedules typically ranging from three to five years.
• Exercise prices are often set at or above the market price of the stock at the time of the grant.
• Companies like McDonald's, Restaurant Brands International (owner of Burger King and Tim Hortons), and Starbucks also utilize stock options as part of their executive compensation packages.
• The specific terms of these grants, such as vesting schedules and exercise prices, can vary depending on the company's compensation policies and industry practices.

Stakeholder Impact

• Shareholders may view the adjusted stock options as a way to further align the director's interests with the company's performance.
• Employees may see this as a positive sign that management is incentivized to improve the company's value.

Key Dates

Keywords

stock options, FAT Brands, director, amendment, exercise price, Elenowitz, options