Form 4: Fortress Biotech Director Lu Lucy Reports Stock Grant and Deferred Compensation

Director Lu Lucy reports receiving a grant of restricted stock and electing to defer it into share units under Fortress Biotech's compensation plan.

Summary

• On January 1, 2025, Lu Lucy, a director of Fortress Biotech, Inc. (FBIO), was granted 49,383 shares of restricted stock under the company's 2013 Stock Incentive Plan.
• Lucy elected to defer 100% of these shares under the Deferred Compensation Plan for Directors, receiving deferred share units instead.
• These deferred share units are subject to the same vesting schedule as the original restricted stock grant: one-third vesting on each of January 1, 2026, 2027, and 2028, contingent upon continued service.
• Vested shares will be delivered in January following termination of service, or earlier upon death or a change in control of the Issuer.
• Following these transactions, Lucy beneficially owns 61,273 shares of Fortress Biotech, including 58,047 shares underlying deferred restricted stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The filing reflects standard compensation practices and aligns director interests with shareholders. There are no immediate negative implications.

Positives

• The grant of restricted stock aligns the director's interests with those of the shareholders.
• The vesting schedule encourages continued service and commitment to the company.
• The deferred compensation plan allows for tax-efficient wealth accumulation.

Risks

• The value of the deferred share units is tied to the performance of Fortress Biotech's stock.
• The director must remain in service to fully vest the restricted stock and deferred share units.
• Changes in control of the Issuer could accelerate the vesting and delivery of shares.

Future Outlook

The director's future compensation is tied to the performance of Fortress Biotech's stock and continued service with the company.

Industry Context

Stock grants and deferred compensation are common practices for aligning the interests of directors and management with those of shareholders in publicly traded companies.

Comparison to Industry Standards

• Stock-based compensation is a standard practice among publicly traded biotech companies to incentivize executives and directors.
• Vesting schedules, typically over three to four years, are designed to retain key personnel.
• Deferred compensation plans are often used to provide tax advantages and retirement savings opportunities for executives and directors.

Stakeholder Impact

• Shareholders: The stock grant aligns the director's interests with those of the shareholders.
• Employees: The compensation structure may influence employee morale and retention.
• Company: The vesting schedule encourages continued service and commitment to the company.

Key Dates