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

Allen Sussman, General Counsel of FAT Brands, Inc., amended several stock option grants on March 18, 2025, resulting in adjustments to the exercise prices.

Summary

• On March 18, 2025, Allen Sussman, the General Counsel of FAT Brands, Inc., filed a Form 4 detailing changes in beneficial ownership.
• The filing reports amendments to previously granted stock options, specifically reducing the exercise price of these options.
• The amendments involved the deemed cancellation of old options and the grant of replacement options with the adjusted exercise prices.
• The exercise price was reduced by $2.599553 per share for options granted on December 10, 2018, October 20, 2017, and November 16, 2021.
• The amended options relate to Class A Common Stock.
• Following the transactions, Sussman directly owns 15,318 options with an exercise price of $2.2, 15,318 options with an exercise price of $8.08, and 75,000 options with an exercise price of $8.83.

Sentiment

Score: 5

Explanation: The document is a routine regulatory filing detailing stock option amendments. It doesn't inherently convey positive or negative sentiment, but rather reports a factual event.

Industry Context

Stock option amendments are a common practice to incentivize executives, especially when the stock price has underperformed since the original grant date. This adjustment aims to keep the options valuable and retain key personnel.

Comparison to Industry Standards

• Companies like McDonald's, Restaurant Brands International (owner of Burger King, Tim Hortons, Popeyes), and Wendy's also use stock options as part of their executive compensation packages.
• The specific terms of option grants, such as vesting schedules and exercise prices, vary widely based on company performance, industry benchmarks, and individual negotiations.
• Amending option terms is not uncommon, particularly in volatile market conditions, to ensure the incentive remains effective.
• Comparing the adjusted exercise prices to the current market price of FAT Brands stock would provide further context on the potential impact of these amendments.

Stakeholder Impact

• The amendment of stock options could potentially impact shareholder value depending on the future performance of the company's stock.
• The adjustment aims to incentivize the General Counsel, potentially improving company performance.
• Employees holding similar stock options may experience similar adjustments.

Key Dates

Keywords

FAT Brands, Stock Options, Form 4, Beneficial Ownership, Allen Sussman, General Counsel, Amendment, Exercise Price