Form 4: Fox Factory Holding Corp: Chief Legal Officer Toby D. Merchant Reports Acquisition of Restricted Stock Units

Toby D. Merchant, Chief Legal Officer of Fox Factory Holding Corp, reports the acquisition of 16,259 restricted stock units on March 4, 2025, under the company's 2022 Omnibus Plan.

Summary

• On March 4, 2025, Toby D. Merchant, the Chief Legal Officer of Fox Factory Holding Corp, acquired 16,259 restricted stock units.
• These units were granted under the Issuer's 2022 Omnibus Plan.
• The restricted stock units vest in three equal annual installments starting on March 4, 2026.
• Following this transaction, Merchant directly owns 28,420 shares of Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard executive compensation practices and aligns management interests with shareholders.

Positives

• The acquisition of restricted stock units by a key officer aligns their interests with the long-term performance of the company.

Future Outlook

The vesting schedule of the restricted stock units indicates a multi-year commitment by the executive to the company's success.

Industry Context

This type of equity grant is a common practice in publicly traded companies to incentivize and retain key executives.

Comparison to Industry Standards

• Equity compensation is a standard practice among publicly traded companies like Fox Factory Holding Corp to align executive interests with shareholder value.
• Comparable companies in the recreational vehicle and performance automotive sectors, such as Polaris Inc. and Brunswick Corporation, also utilize stock options and restricted stock units as part of their executive compensation packages.
• These grants typically vest over a three-to-five year period, similar to the vesting schedule outlined in this Form 4 filing, to encourage long-term commitment and performance.

Stakeholder Impact

• The grant of restricted stock units to a key executive can positively impact shareholders by aligning management's interests with the company's long-term success.

Key Dates