Form 4: Funko Director Sarah Kirshbaum Levy Granted Equity Awards

Funko, Inc. Director Sarah Kirshbaum Levy was granted 17,419 Restricted Stock Units and options to purchase 26,000 shares of Class A Common Stock, vesting on June 12, 2026.

Summary

• Funko, Inc. Director Sarah Kirshbaum Levy received equity compensation on June 12, 2025.
• The compensation includes 17,419 Restricted Stock Units (RSUs), each representing a contingent right to receive one share of Class A Common Stock or an equivalent cash payment.
• Additionally, Ms. Levy was granted options to purchase 26,000 shares of Class A Common Stock at an exercise price of $5.2 per share.
• Both the RSUs and stock options are scheduled to vest and become exercisable on June 12, 2026, contingent upon Ms. Levy's continued service with Funko, Inc.
• The stock options have an expiration date of June 12, 2035.

Sentiment

Score: 6

Explanation: The grant of equity to a director is a routine compensation event that aligns insider interests with shareholders, generally viewed as a neutral to slightly positive governance practice for retention and performance incentives.

Positives

• The grant of equity awards to Director Sarah Kirshbaum Levy aligns her interests with those of shareholders, incentivizing long-term performance and retention.
• The compensation structure, including both RSUs and stock options, provides a balanced incentive for the director.

Negatives

• The issuance of new equity awards could lead to minor dilution for existing shareholders upon vesting and exercise, though the amounts are relatively small in the context of the company's overall shares outstanding.

Future Outlook

The vesting of the granted Restricted Stock Units and stock options is contingent on the reporting person's continued service with Funko, Inc. through June 12, 2026, indicating an expectation of continued tenure for the director.

Industry Context

This filing represents a routine insider compensation event, common across publicly traded companies to incentivize and retain key personnel, including directors. It does not reflect broader industry trends or competitive shifts.

Related Party Transactions

• The grant of equity awards to Sarah Kirshbaum Levy, a director of Funko, Inc., constitutes a related party transaction as it involves compensation provided by the company to a member of its board.

Stakeholder Impact

• Shareholders: Potential minor dilution upon vesting and exercise of the equity awards, but also improved alignment of director incentives with shareholder value.
• Employees: No direct impact on general employees, as this relates to director compensation.

Next Steps

• The Restricted Stock Units and stock options are scheduled to vest on June 12, 2026, provided the reporting person continues their service with Funko, Inc.
• The stock options will remain exercisable until their expiration date of June 12, 2035.

Key Dates

Keywords

Funko, FNKO, SEC Form 4, Insider Transaction, Equity Grant, Restricted Stock Units, Stock Options, Director Compensation, Sarah Kirshbaum Levy