Form 4: Farmer Mac EVP Stephen Mullery Executes Stock Appreciation Rights, Sells Shares

Stephen Mullery, EVP and General Counsel of Farmer Mac, exercised stock appreciation rights and sold shares of Class C Non-Voting Common Stock.

Summary

• On September 9, 2024, Stephen Mullery, EVP and General Counsel of Farmer Mac, exercised 5,610 vested stock appreciation rights (SARs) granted in April 2015 at a grant price of $32.39 per share.
• As a result, Mr. Mullery was entitled to receive 4,609 shares of Class C Non-Voting Common Stock.
• He received and later sold 2,472 shares, while Farmer Mac retained 2,137 shares to cover tax withholding requirements.
• Additionally, 1,001 shares are reported as a disposition to the issuer, representing the difference between the number of SARs exercised and the number of shares issuable.
• On September 10, 2024, Mr. Mullery sold 2,472 shares of Class C Non-Voting Common Stock at a weighted average price of $182.281.
• Following these transactions, Mr. Mullery beneficially owns 22,045 shares of Class C Non-Voting Common Stock, which includes 3,417 unvested restricted stock units.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing detailing insider transactions, with no inherent positive or negative sentiment.

Industry Context

This Form 4 filing is a routine disclosure of insider transactions, providing transparency to investors regarding the actions of company executives.

Comparison to Industry Standards

• Executive compensation practices, including the use of stock appreciation rights, are common in publicly traded companies like Farmer Mac to align management's interests with those of shareholders.
• The exercise and sale of shares are typical activities for executives holding equity-based compensation.
• Comparable companies in the financial services sector, such as AgFirst Farm Credit Bank and CoBank, also utilize equity-based compensation for their executives.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the change in ownership of shares.
• The company's tax obligations are affected by the share retention for tax withholding.

Key Dates