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

Andrea Renee Bortner, EVP and Chief Human Resources Officer at Grocery Outlet Holding Corp., acquired shares of common stock through the vesting of performance stock units (PSUs) and the grant of restricted stock units (RSUs).

Summary

• On February 29, 2024, Andrea Renee Bortner, EVP and Chief Human Resources Officer at Grocery Outlet Holding Corp., acquired 15,342 shares of common stock upon the vesting of performance stock units (PSUs) granted on March 4, 2021.
• Additionally, Ms. Bortner acquired 14,238 restricted stock units (RSUs) on the same date, which will vest in three equal annual installments from March 1, 2024, to March 1, 2027, contingent upon continued service.
• Following these transactions, Ms. Bortner directly owns 53,420 shares of Grocery Outlet Holding Corp. common stock and indirectly owns 22,446 shares through the Bortner Family Trust.
• The filing also notes that Ms. Bortner may be eligible to vest in up to an additional 21,357 unvested PSUs at target achievement (or up to an additional 42,714 unvested PSUs at maximum achievement) which are eligible to vest upon the achievement of certain performance-based vesting conditions.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices. The vesting of PSUs suggests positive performance, while the RSU grant incentivizes continued service. Overall, the sentiment is neutral to slightly positive.

Positives

• The vesting of PSUs indicates that performance-based goals were met, which could be viewed positively.
• The grant of RSUs aligns Ms. Bortner's interests with the long-term success of the company, as the vesting is tied to continued service.

Future Outlook

The RSUs will continue to vest over the next three years, subject to Ms. Bortner's continued service.

Industry Context

Stock grants and vesting are common forms of executive compensation in publicly traded companies, aligning management's interests with shareholder value.

Comparison to Industry Standards

• Executive compensation packages, including stock options, RSUs, and PSUs, are standard practice among publicly traded companies like Grocery Outlet.
• Companies such as Kroger, Albertsons, and Sprouts Farmers Market also utilize similar equity-based compensation to incentivize and retain key executives.
• The vesting schedules and performance metrics associated with these grants are typically benchmarked against industry peers to ensure competitiveness and alignment with company goals.

Stakeholder Impact

• The stock transactions have a minor dilutive effect on existing shareholders.
• The executive compensation structure aims to align management's interests with shareholder value.

Key Dates