Form 4: Funko Director Jesse Jacobs Receives Stock Options and Restricted Stock Units

Director Jesse Jacobs received stock options and restricted stock units as compensation for his service on Funko's board of directors.

Summary

• Jesse Jacobs, a director at Funko, Inc., received compensation in the form of stock options and restricted stock units (RSUs) on June 4, 2024.
• He was granted 10,204 RSUs, each representing a contingent right to receive one share of Class A Common Stock or an equivalent cash payment.
• These RSUs will vest on June 4, 2025, contingent upon his continued service with Funko.
• Jacobs also received options to purchase 25,500 shares of Class A Common Stock at an exercise price of $9.43.
• These options will also vest on June 4, 2025, subject to his continued service.
• The securities are held by Jacobs for the benefit of TCG Capital Management, LP, which has the right to nominate up to two directors to Funko's board under a Stockholders Agreement.
• Jacobs disclaims beneficial ownership of these securities except to the extent of his pecuniary interest.

Sentiment

Score: 6

Explanation: The document is a routine disclosure of director compensation, which is neither particularly positive nor negative. The sentiment is neutral.

Positives

• The grant of RSUs and stock options aligns the director's interests with the company's performance.
• The vesting schedule encourages continued service and commitment to Funko.
• TCG's involvement and board representation can bring valuable expertise and oversight.

Risks

• The value of the RSUs and stock options is dependent on Funko's stock price performance.
• If Jacobs leaves the board before the vesting date, he will forfeit the unvested RSUs and options.
• The disclaimer of beneficial ownership could indicate a limited direct financial stake in Funko's success.

Future Outlook

The document does not contain specific forward-looking statements about Funko's future performance, but the vesting of the RSUs and options is tied to the director's continued service.

Management Comments

• The reporting person disclaims beneficial ownership of such securities except to the extent of his pecuniary interest therein and this report shall not be deemed an admission that he is the beneficial owner of such securities for purposes of Section 16 or for any other purpose.

Industry Context

Grants of stock options and restricted stock units are common forms of compensation for directors of publicly traded companies, aligning their interests with shareholders.

Comparison to Industry Standards

• Director compensation packages vary widely across industries and company sizes.
• Comparing Funko's director compensation to that of similar-sized companies in the consumer discretionary sector would provide a better benchmark.
• Companies like Mattel or Hasbro could be considered peers for comparison purposes.

Stakeholder Impact

• Shareholders may view the director compensation as a necessary expense to attract and retain qualified board members.
• Employees may see the director compensation as a reflection of the company's overall financial health.

Key Dates