Form 4: Farmer Mac Executive Zachary Carpenter Reports Changes in Beneficial Ownership

Zachary Carpenter, EVP Chief Business Officer of Federal Agricultural Mortgage Corp (Farmer Mac), reports changes in beneficial ownership due to vesting of restricted stock units and shares withheld for tax obligations.

Summary

• On March 31, 2024, Zachary Carpenter, EVP Chief Business Officer of Farmer Mac, reported changes in his beneficial ownership of Class C Non-Voting Common Stock.
• These changes are primarily due to the vesting of restricted stock units granted in March 2021, March 2022 and March 2023.
• Farmer Mac withheld shares to satisfy withholding requirements related to these vestings.
• Specifically, 1,326 shares were withheld to cover these tax obligations at a price of $196.88 per share.
• Following these transactions, Carpenter beneficially owns 9,380 shares, which includes 4,666 unvested restricted stock units.
• The total amount of securities beneficially owned has been adjusted since the Reporting Person's last filing to reflect 40 more shares that vested on March 31, 2024 as a result of applying a 103.7754% performance factor to 1,054 target restricted stock units granted in March 2021.

Sentiment

Score: 7

Explanation: The document is a standard SEC filing related to executive compensation. It doesn't contain any alarming information and reflects normal business operations. The vesting of stock units and subsequent tax withholding are routine events.

Positives

• The vesting of restricted stock units indicates that Carpenter is meeting the conditions of his compensation package.
• The disclosure is transparent and in compliance with SEC regulations.

Industry Context

This filing is a routine disclosure related to executive compensation and is typical for publicly traded companies. It provides transparency into the equity holdings of key executives.

Comparison to Industry Standards

• Executive compensation packages often include restricted stock units that vest over time, aligning executive interests with shareholder value.
• The vesting schedules and performance-based components are common practices observed in similar financial institutions and publicly listed companies.
• Companies like Fannie Mae and Freddie Mac also utilize similar equity-based compensation structures for their executives.

Stakeholder Impact

• The vesting of restricted stock units aligns executive interests with shareholder value.
• The disclosure provides transparency to shareholders regarding executive compensation.

Key Dates