Form 4: Grocery Outlet Interim CEO Eric Lindberg Jr. Reports Changes in Beneficial Ownership
SEC Form 4 Filing
Eric Lindberg Jr., Interim President and CEO of Grocery Outlet Holding Corp., reports acquisition of restricted stock units and adjustments to beneficial ownership.
Summary
- Eric Lindberg Jr., the Interim President and CEO of Grocery Outlet Holding Corp., filed a Form 4 detailing changes in his beneficial ownership of the company's stock.
- The report indicates that Lindberg acquired 295,280 restricted stock units (RSUs) on October 30, 2024, at a price of $0.
- These RSUs will vest based on the earlier of the commencement date of a permanent CEO, October 29, 2025, or Lindberg's resignation or termination date, prorated based on his service as Interim CEO.
- Vesting is contingent upon continued employment, with no vesting if Lindberg resigns (without board agreement) or is terminated for cause before a new CEO starts.
- Lindberg's total direct holdings after the transaction amount to 366,218 shares.
- He also has indirect ownership through the Lindberg Family Revocable Trust (2,026,670 shares), the Lindberg Irrevocable Trust (401,500 shares), and holdings by his child and spouse (460 shares each).
Sentiment
Score: 6
Explanation: The sentiment is neutral. It's a routine filing indicating changes in ownership. The RSU grant is a positive sign of alignment, but the vesting conditions introduce some uncertainty.
Positives
- The grant of RSUs to the Interim CEO aligns his interests with the company's performance during the transition period.
Risks
- The vesting of RSUs is contingent on specific conditions, including the appointment of a permanent CEO and Lindberg's continued employment, which introduces uncertainty.
Future Outlook
The vesting of the RSUs is tied to future events, specifically the appointment of a permanent CEO or the Interim CEO's tenure, making the ultimate value dependent on these factors.
Industry Context
Form 4 filings are standard practice for company insiders and provide transparency into their transactions in the company's stock. This filing indicates changes in the Interim CEO's holdings, which is relevant to investors monitoring management's alignment with shareholder interests.
Stakeholder Impact
- The RSU grant could positively impact shareholder confidence by aligning the Interim CEO's interests with the company's success.
Key Dates
| Date | Description |
|---|---|
| 2006-02-14 | Date of Lindberg Family Revocable Trust u/a/d |
| 2017-05-12 | Date of Lindberg Irrevocable Trust u/a/d |
| 2024-10-30 | Date of transaction: Acquisition of 295,280 restricted stock units |
| 2024-10-31 | Date of Form 4 filing |
| 2025-10-29 | Potential vesting date for RSUs if no permanent CEO is appointed before |
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