Form 4: Houlihan Lokey CEO Receives Equity Grant

CEO Scott J. Adelson received a grant of 17,274 shares of Class B Common Stock under the company's 2016 Incentive Award Plan.

Summary

• CEO Scott J. Adelson was granted 13,952 shares of Class B Common Stock vesting in four equal annual installments.
• An additional 3,322 performance-based shares were granted, subject to revenue growth targets.
• The reporting person maintains indirect beneficial ownership of 885,102 shares through the HL Voting Trust.
• The transactions occurred on May 21, 2026, under the company's 2016 Incentive Award Plan.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a routine regulatory disclosure regarding executive compensation, which is neutral for the stock price.

Positives

• Alignment of executive compensation with long-term shareholder interests through multi-year vesting schedules.
• Inclusion of performance-based equity grants tied to revenue growth metrics.

Negatives

• Potential for future dilution of existing shareholders upon the conversion of Class B shares to Class A common stock.

Risks

• Performance-based shares are subject to forfeiture if specific revenue growth targets are not met.
• Concentration of voting power through the HL Voting Trust.

Future Outlook

The performance-based portion of the grant is contingent upon achieving specific revenue growth targets over a four-year period.

Management Comments

• The grants were issued pursuant to the company's 2016 Incentive Award Plan.

Industry Context

StockSavvy.ai notes that equity-based compensation for senior executives remains a standard practice in the investment banking sector to ensure retention and alignment with firm performance.

Comparison to Industry Standards

• The use of performance-based vesting criteria is consistent with industry best practices for executive compensation at publicly traded financial services firms like Lazard or Evercore.

Related Party Transactions

• Reporting person is a trustee of the HL Voting Trust.

Stakeholder Impact

• Shareholders may experience minor dilution upon the eventual conversion of Class B shares to Class A shares.

Next Steps

• Vesting of the granted shares in four equal annual installments starting from the grant date.

Key Dates

Keywords

Houlihan Lokey, HLI, Insider Trading, Executive Compensation, Form 4, Equity Grant