Form 4: Grocery Outlet Director Erik Ragatz Reports Changes in Beneficial Ownership

Director Erik Ragatz reports acquisition of deferred stock units and adjustments to beneficial ownership of Grocery Outlet Holding Corp. shares.

Summary

• Erik Ragatz, a director of Grocery Outlet Holding Corp., filed a Form 4 detailing changes in his beneficial ownership.
• On June 3, 2024, Mr. Ragatz acquired 6,803 deferred stock units (DSUs) which will vest on the earlier of the next annual meeting or June 3, 2025, contingent on continued service.
• These DSUs represent the annual equity retainer under the Issuer's non-employee director compensation policy and will be settled in shares of Common Stock upon termination of service.
• Mr. Ragatz directly owns 37,789 shares of common stock.
• He indirectly owns 429,785 shares through a limited partnership, 5,200 shares through his spouse, 38,000 shares through a 401k plan, and 36,500 shares through the Ragatz Revocable Trust.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing, indicating routine changes in ownership. Sentiment is neutral.

Positives

• The grant of deferred stock units aligns the director's interests with the long-term performance of the company.
• The director's significant holdings demonstrate a vested interest in the company's success.

Future Outlook

The deferred stock units are scheduled to vest on the earlier of (i) the date of the next annual meeting of stockholders following the date of grant; or (ii) June 3, 2025, subject to the continued service of the reporting person through such vesting date, and, if vested, will be settled in shares of Common Stock upon the reporting person's termination of service from the board of directors.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the trading activities and ownership positions of company insiders.

Stakeholder Impact

• The filing provides transparency to shareholders regarding insider ownership.
• The vesting of DSUs incentivizes the director to act in the best interests of the company and its shareholders.

Key Dates