Form 4: Farmer Mac Director James R. Engebretsen Acquires Additional Shares in Lieu of Cash Retainer

Director James R. Engebretsen increased his holdings in Farmer Mac's Class C Non-Voting Common Stock by acquiring 101 shares in lieu of a cash retainer.

Summary

• On December 31, 2024, James R. Engebretsen, a director of Federal Agricultural Mortgage Corporation (Farmer Mac), acquired 101 shares of Class C Non-Voting Common Stock.
• The shares were acquired in lieu of receiving a portion of his quarterly retainer in cash.
• The purchase price was $196.95 per share, based on the closing price on the New York Stock Exchange on December 31, 2024.
• Following the transaction, Engebretsen's total holdings include 15,392 shares, including 373 unvested restricted stock units that will vest on March 31, 2025, contingent on his continued service as a director.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The director's decision to take shares instead of cash suggests confidence in the company's prospects. However, it's a routine transaction.

Positives

• The director's decision to take shares in lieu of cash demonstrates confidence in the company's future prospects.

Industry Context

Directors often receive compensation in the form of stock to align their interests with those of shareholders. This transaction reflects a common practice in corporate governance.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash and equity.
• The specific allocation between cash and equity can vary based on company size, industry, and individual director agreements.
• Many companies use restricted stock units (RSUs) that vest over time to incentivize long-term commitment from directors.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with theirs.

Key Dates