Form 4: Farmer Mac CEO Bradford T. Nordholm Exercises Stock Appreciation Rights

Farmer Mac CEO Bradford T. Nordholm exercised stock appreciation rights, resulting in the acquisition and disposition of Class C Non-Voting Common Stock.

Summary

• On February 25, 2025, Bradford T. Nordholm, President and CEO of Federal Agricultural Mortgage Corporation (Farmer Mac), exercised stock appreciation rights (SARs).
• The exercise involved SARs granted in February 2019 at a price of $82.76 per share, resulting in the acquisition of 6,114 shares of Class C Non-Voting Common Stock.
• Farmer Mac retained 2,966 shares to cover tax withholding requirements.
• Nordholm also exercised SARs granted in March 2020 at a price of $75.16 per share, acquiring 8,155 shares of Class C Non-Voting Common Stock.
• From this second transaction, Farmer Mac retained 3,939 shares for tax withholding.
• The reported transactions also include the disposition of 4,176 and 4,760 shares to the issuer, representing the difference between the number of SARs exercised and the number of shares issuable.
• Following these transactions, Nordholm beneficially owns 48,468.4506 shares of Class C Non-Voting Common Stock.
• The transactions were executed during an open trading window for Farmer Mac employees and directors.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing detailing executive stock transactions. It doesn't inherently convey positive or negative sentiment, but rather provides factual information. The sentiment is neutral to slightly positive as it reflects management's continued involvement with the company's equity.

Positives

• The transactions occurred during an open trading window, indicating compliance with company policies.

Industry Context

This filing is a routine disclosure of insider transactions, which are common for executives who receive stock-based compensation. It provides transparency into management's actions regarding company stock.

Comparison to Industry Standards

• Executive compensation packages often include stock options, restricted stock units (RSUs), and stock appreciation rights (SARs) to align management's interests with those of shareholders.
• The structure of Farmer Mac's executive compensation appears consistent with industry practices, using SARs that vest over time.
• Comparable companies in the financial services sector, such as Fannie Mae and Freddie Mac, also utilize stock-based compensation as part of their executive pay packages.

Stakeholder Impact

• The transactions have a minor impact on shareholders, as they involve the exercise of existing stock appreciation rights and do not represent a significant dilution of equity.

Key Dates