Form 4: Funko Director Mike Kerns Reports Acquisition of Restricted Stock Units and Stock Options

Director Mike Kerns reports the acquisition of restricted stock units and stock options in Funko, Inc. as compensation for board service.

Summary

• Mike Kerns, a director of Funko, Inc., filed a Form 4 to report changes in beneficial ownership.
• On June 4, 2024, Kerns acquired 10,204 restricted stock units (RSUs) and 25,500 options to purchase Class A Common Stock.
• The RSUs and options were granted as compensation for his service on Funko's board of directors.
• The RSUs vest on June 4, 2025, and represent a contingent right to receive one share of Class A Common Stock or an equivalent cash payment.
• The options will vest and become exercisable on June 4, 2025, also contingent on continued service.
• Kerns serves on the board pursuant to a Stockholders Agreement with TCG Capital Management, LP, which has the right to nominate up to two directors.
• Kerns disclaims beneficial ownership of the securities except to the extent of his pecuniary interest.

Sentiment

Score: 7

Explanation: The document reflects a standard compensation practice, indicating a stable and well-governed company. The sentiment is neutral to slightly positive.

Positives

• The grant of RSUs and options aligns the director's interests with the company's performance.
• The vesting requirements incentivize continued service on the board.

Future Outlook

The RSUs and options vest on June 4, 2025, contingent on continued service with the Issuer.

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

This filing is a routine disclosure of equity compensation granted to a director, which is a common practice in publicly traded companies to align management's interests with shareholders'.

Comparison to Industry Standards

• Equity compensation for board members is a standard practice across publicly traded companies.
• Companies like Hasbro and Mattel also grant stock options and restricted stock units to their directors as part of their compensation packages.
• The vesting schedules and terms are generally comparable to industry norms, with vesting typically tied to continued service.

Stakeholder Impact

• The equity grants align the director's interests with those of shareholders, potentially encouraging decisions that benefit the company's long-term value.

Key Dates