Form 4: Hackett Group CEO Ted Fernandez Receives Stock Grants

Ted Fernandez, Chairman and CEO of Hackett Group, received grants of restricted stock units (RSUs) and performance restricted stock units (PRSUs) as reported in a recent SEC filing.

Summary

• Ted Fernandez, the Chairman and CEO of Hackett Group, received 60,998 restricted stock units (RSUs) on February 14, 2025, at a price of $0.
• These RSUs vest in three equal installments beginning February 14, 2026, and convert to common stock on a one-for-one basis.
• Fernandez also received 786,885 performance restricted stock units (PRSUs) on September 16, 2024.
• These PRSUs can be earned based on Hackett Group's achievement of certain stock price targets ($30, $40, and $50) over a performance period ending December 31, 2028.
• Vesting of the PRSUs is also contingent on continued service through the first, second, and third anniversaries of the grant date for each respective price hurdle.
• As of the report, Fernandez directly owns 1,734,134 shares of common stock, including 131,914 unvested RSUs.
• He also indirectly owns 69,948 shares through the Christina Fernandez Irrevocable Trust (1998) and 87,143 shares through the Ted A. Fernandez, Jr. Irrevocable Trust (1998).

Sentiment

Score: 6

Explanation: The document is a routine disclosure of executive compensation. It's neutral in tone, simply reporting the facts of the stock grants. The positive aspect is the alignment of management incentives with shareholder value, while the risk is the dependence on stock performance and continued service.

Positives

• The grant of RSUs and PRSUs aligns the CEO's interests with the long-term performance of the company.
• The vesting conditions based on stock price targets incentivize the CEO to drive shareholder value.
• The continued service requirement ensures the CEO's commitment to the company.

Risks

• The PRSUs may not fully vest if the company does not achieve the specified stock price targets.
• The vesting of RSUs and PRSUs is contingent on the CEO's continued service, creating a potential risk if he were to leave the company.

Future Outlook

The vesting of the PRSUs is dependent on the company's future stock performance, incentivizing management to achieve specific stock price targets by December 31, 2028.

Industry Context

Stock grants are a common form of executive compensation used to align management's interests with those of shareholders. The specific terms of the grants, such as vesting schedules and performance targets, vary depending on the company and industry.

Comparison to Industry Standards

• Comparing the size and structure of these grants to those of CEOs at similar consulting firms would provide a benchmark for assessing their competitiveness and appropriateness.
• Companies like Accenture, McKinsey, and Boston Consulting Group could be used as comparables, although their executive compensation structures may differ due to their private ownership.

Stakeholder Impact

• Shareholders: The stock grants align the CEO's interests with the company's long-term performance and shareholder value.
• Employees: The grants may have a positive impact on employee morale by demonstrating the company's commitment to its leadership.
• Creditors: The grants are unlikely to have a significant impact on creditors.

Key Dates

Keywords

Hackett Group, Ted Fernandez, RSU, PRSU, Stock Grant, SEC Form 4, Beneficial Ownership, Executive Compensation