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

Mason Alan Wiederhorn, Chief Brand 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, Mason Alan Wiederhorn, the Chief Brand Officer of FAT Brands, Inc., amended several stock option grants.
• The amendments involved reducing the exercise price of outstanding options by $2.599553 per share.
• This resulted in the deemed cancellation of the 'old' options and the grant of replacement options.
• 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 beginning on the first anniversary of the grant date.
• The transactions involved options with original exercise prices of $4.8, $2.2, $10.68, $8.08, $11.43 and $8.83.
• The number of shares involved in each amended option grant was 15,318, 15,318 and 75,000 respectively.

Sentiment

Score: 5

Explanation: The document is a routine regulatory filing regarding stock option amendments, indicating a neutral sentiment.

Industry Context

This type of stock option amendment is a fairly common practice to incentivize executives, especially when the stock price has underperformed since the original grant date.

Comparison to Industry Standards

• Stock option plans are a standard component of executive compensation packages across the restaurant and hospitality industry.
• Companies like McDonald's, Restaurant Brands International (QSR), and Domino's Pizza also utilize stock options as part of their executive compensation strategy.
• The vesting schedules and exercise prices are typically benchmarked against industry peers to ensure competitiveness and alignment with shareholder interests.
• The reduction of the exercise price is not uncommon when a company's stock price has declined significantly since the original grant date; this is done to maintain the incentive value of the options.

Stakeholder Impact

• The amendment of stock options may have a minor impact on shareholders by potentially diluting equity if the options are exercised in the future.
• The amendment is intended to incentivize the Chief Brand Officer, which could indirectly benefit stakeholders if it leads to improved company performance.

Key Dates

Keywords

stock options, FAT Brands, Mason Alan Wiederhorn, exercise price, amendment, Chief Brand Officer, Form 4