Form 4: Farmer Mac SVP Robert Maines Reports Stock and Rights Grants

Robert Maines, SVP of Operations at Farmer Mac, reports the grant of restricted stock units and stock appreciation rights.

Summary

• Robert Maines, SVP Operations at Federal Agricultural Mortgage Corp (Farmer Mac), filed a Form 4 on March 10, 2025.
• The filing reports the grant of 438 Class C Non-Voting Common Stock restricted stock units (RSUs) and 219 performance-based RSUs.
• The RSUs vest in installments beginning March 31, 2026, and the performance-based RSUs vest on March 31, 2028, contingent on Farmer Mac meeting certain performance objectives.
• Maines also received 729 stock appreciation rights exercisable in installments beginning March 31, 2026, and expiring on March 6, 2035.
• Following the reported transactions, Maines beneficially owns 3,307 shares of Class C Non-Voting Common Stock related to the time-vested RSUs and 3,526 shares related to the performance-based RSUs, as well as 729 stock appreciation rights.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, suggesting a stable and incentivized management structure. The performance-based metrics indicate a focus on achieving specific financial goals.

Positives

• The grant of RSUs and stock appreciation rights aligns Maines' interests with those of Farmer Mac's shareholders.
• The performance-based RSUs incentivize Maines to achieve specific financial goals for the company.

Risks

• The vesting of the performance-based RSUs is contingent on Farmer Mac meeting certain performance objectives, which may not be achieved.
• The value of the stock appreciation rights depends on the future performance of Farmer Mac's Class C Non-Voting Common Stock.

Future Outlook

The vesting of RSUs and exercisability of stock appreciation rights are contingent upon continued employment and/or the achievement of performance objectives.

Industry Context

This filing is a routine disclosure of equity-based compensation for a company executive, common in publicly traded companies to align management incentives with shareholder value.

Comparison to Industry Standards

• Equity compensation is a standard practice among publicly traded companies, including those in the financial services sector.
• Comparable companies like Fannie Mae and Freddie Mac also utilize RSUs and stock options as part of their executive compensation packages.
• The vesting schedules and performance metrics associated with these grants are generally aligned with industry best practices for incentivizing long-term value creation.

Stakeholder Impact

• The equity grants aim to align management's interests with those of shareholders, potentially leading to increased shareholder value.
• The vesting of RSUs contingent on continued employment may encourage employee retention.

Key Dates