Form 4: FAT Brands Executive Amends Stock Options to Reduce Exercise Price

Taylor Andrew Wiederhorn, Chief Development Officer of FAT Brands, Inc., amended several stock option grants to reduce the exercise price by $2.599553 per share on March 18, 2025.

Summary

• On March 18, 2025, Taylor Andrew Wiederhorn, the Chief Development Officer of FAT Brands, Inc., filed a Form 4.
• The filing reports amendments to previously granted stock options.
• The amendments involve reducing the exercise price of the options by $2.599553 per share.
• This resulted in the deemed cancellation of the original options and the grant of replacement options with the adjusted exercise price.
• The affected options were originally granted on December 10, 2018, October 20, 2017, and November 16, 2021.
• Each of these options vests in three equal annual installments from the first anniversary of the grant date.

Sentiment

Score: 6

Explanation: The document itself is neutral, simply reporting a transaction. The impact is slightly positive as it incentivizes management, but not significantly so.

Positives

• The reduction in the exercise price of the stock options may incentivize the executive to improve company performance.
• The executive now has a greater incentive to increase the share price.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

Industry Context

Stock option grants and amendments are a common practice in executive compensation, particularly in publicly traded companies like FAT Brands. The adjustment of exercise prices can be influenced by factors such as company performance and market conditions.

Comparison to Industry Standards

• Comparing FAT Brands' executive compensation practices to similar restaurant groups like McDonald's, Restaurant Brands International (QSR), and Wendy's reveals that stock options are a standard component of executive pay.
• However, the specific terms, such as vesting schedules and exercise prices, can vary significantly based on company performance and individual negotiations.
• For example, McDonald's often uses a mix of stock options and restricted stock units (RSUs) in its executive compensation packages, while QSR may emphasize performance-based equity awards.

Stakeholder Impact

• Shareholders may view the adjusted stock options as a way to align management's interests with the company's performance.
• Employees may see this as a positive sign that the company is investing in its leadership.

Key Dates

Keywords

stock options, FAT Brands, Wiederhorn, executive compensation, Form 4, amendment, exercise price