Form 4: Grocery Outlet Executive Acquires Shares Following PSU Vesting and RSU Grant

Pamela B. Burke, EVP and Chief Stores Officer of Grocery Outlet Holding Corp., acquired shares of common stock due to performance stock unit (PSU) vesting and received a grant of restricted stock units (RSUs).

Summary

• On February 29, 2024, Pamela B. Burke, EVP, Chief Stores Officer of Grocery Outlet Holding Corp., acquired 16,013 shares of common stock upon the vesting of performance stock units (PSUs).
• These PSUs were granted on March 4, 2021, and vested upon certification by the Issuer's Compensation Committee that certain performance-based vesting conditions had been satisfied.
• Additionally, on February 29, 2024, Ms. Burke received a grant of 15,752 restricted stock units (RSUs).
• These RSUs will vest in three equal installments upon completion of each 12-month period of service from March 1, 2024, to March 1, 2027, subject to continued service.
• Following these transactions, Ms. Burke beneficially owns 82,255 shares of Grocery Outlet Holding Corp. common stock.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and achievement of performance goals, suggesting a moderately positive outlook.

Positives

• The vesting of PSUs indicates that performance goals were met, which is a positive signal.
• The grant of RSUs aligns Ms. Burke's interests with the long-term success of the company.
• Increased share ownership by an executive can be seen as a sign of confidence in the company's future.

Risks

• The vesting of RSUs is contingent upon continued service, so there is a risk of forfeiture if Ms. Burke leaves the company before the vesting dates.

Future Outlook

The RSUs will vest over a three-year period, incentivizing continued service and alignment with long-term company performance.

Industry Context

Executive compensation packages including PSUs and RSUs are common in the retail industry to incentivize performance and retain key personnel. The vesting of PSUs suggests the company is meeting its performance targets, which is a positive indicator compared to industry peers.

Comparison to Industry Standards

• Companies like Kroger and Albertsons also utilize PSUs and RSUs as part of their executive compensation packages.
• The vesting schedules and performance metrics associated with these grants are typically aligned with industry benchmarks for executive compensation.
• The specific terms of Grocery Outlet's PSU and RSU grants would need to be compared to those of its peers to determine if they are above, below, or in line with industry standards.

Stakeholder Impact

• Shareholders may view the vesting of PSUs as a positive sign of company performance.
• Employees may be motivated by the executive's increased stake in the company.
• The transactions have no direct impact on customers, suppliers, or creditors.

Key Dates