Form 4: Grocery Outlet Executive Receives Stock Grant

Calvin Chung, SVP, Chief Store Development Officer at Grocery Outlet Holding Corp., received a grant of 12,657 restricted stock units on February 29, 2024.

Summary

• Calvin Chung, a Senior Vice President and Chief Store Development Officer at Grocery Outlet Holding Corp., filed a Form 4 on March 4, 2024.
• The filing reports a transaction that occurred on February 29, 2024, where Mr. Chung was granted 12,657 restricted stock units (RSUs).
• These RSUs will vest in three equal installments over three years, contingent upon Mr. Chung's continued service from March 1, 2024, to March 1, 2027.
• The filing also mentions that Mr. Chung may be eligible for up to an additional 18,985 unvested Performance Stock Units (PSUs) at target achievement, or up to 37,970 PSUs at maximum achievement, based on performance-based vesting conditions.
• Following the reported transaction, Mr. Chung beneficially owns 27,912 shares of Grocery Outlet Holding Corp. common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The grant of RSUs is a standard practice, indicating confidence in the executive and the company's future. The performance-based PSUs further align interests.

Positives

• The grant of RSUs and potential PSUs aligns Mr. Chung's interests with the long-term success of Grocery Outlet.
• The vesting schedule encourages continued service and commitment from a key executive.

Future Outlook

The vesting of the RSUs and potential PSUs is contingent upon continued service and, in the case of PSUs, the achievement of certain performance-based vesting conditions.

Industry Context

Granting stock options and restricted stock units is a common practice in the industry to incentivize and retain key executives.

Comparison to Industry Standards

• Stock grants are a typical component of executive compensation packages in the retail industry, aligning management's interests with shareholder value.
• Companies like Kroger, Walmart, and Target also utilize stock-based compensation to incentivize their executives.

Stakeholder Impact

• Shareholders may view the RSU grant positively as it incentivizes management to improve company performance.
• Employees may see this as a positive sign of the company investing in its leadership.

Key Dates