Form 4: Houlihan Lokey Director Todd Carter Granted 2,645 Class B Shares Under Incentive Plan

Houlihan Lokey, Inc. Director Todd J. Carter was granted 2,645 shares of Class B Common Stock on May 22, 2025, as part of the company's 2016 Incentive Award Plan.

Summary

• Todd J. Carter, a Director of Houlihan Lokey, Inc. (HLI), was granted 2,645 shares of Class B Common Stock on May 22, 2025.
• The grant was made pursuant to the company's 2016 Incentive Award Plan.
• These shares will vest in four equal annual installments following the grant date.
• Class B Common Stock is convertible into Class A Common Stock on a one-for-one basis at the option of the holder or upon certain events.
• Following this transaction, Mr. Carter directly beneficially owns 2,645 shares of Class B Common Stock.
• Additionally, Mr. Carter indirectly beneficially owns 89,905 shares of Class B Common Stock deposited into the HL Voting Trust, over which he retains investment control and dispositive power.

Sentiment

Score: 7

Explanation: The document reports a standard equity grant to a director, which is a positive for aligning interests and retention, but it does not contain information that would significantly alter the company's financial outlook or operations.

Positives

• The grant of shares to Director Todd J. Carter aligns his interests with those of shareholders, promoting long-term commitment and performance.
• The use of the 2016 Incentive Award Plan demonstrates the company's ongoing commitment to performance-based compensation for its leadership.

Negatives

• No specific negative aspects are detailed in this Form 4 filing, as it primarily reports a routine equity grant.

Risks

• The value of the granted shares is subject to the market fluctuations of Houlihan Lokey's stock price.
• The vesting schedule means the full benefit of the grant is realized over time, subject to continued service.

Future Outlook

The granted shares will vest in four equal annual installments following the May 22, 2025 grant date, indicating a future commitment and retention mechanism for the director.

Industry Context

Equity grants to directors and executives are a standard practice in the financial services industry, particularly for investment banking and advisory firms like Houlihan Lokey, to incentivize long-term performance and align management interests with shareholder value.

Comparison to Industry Standards

• The grant of equity as part of an incentive award plan is a common compensation strategy across publicly traded companies, including those in the financial advisory sector such as Lazard Ltd. (LAZ) or Evercore Inc. (EVR), aiming to retain key talent and align their performance with company success.
• The vesting schedule over four years is typical for such grants, providing a long-term incentive structure.

Related Party Transactions

• The grant of 2,645 shares of Class B Common Stock to Director Todd J. Carter constitutes a related party transaction, as it involves compensation from the company to a member of its board of directors.

Stakeholder Impact

• Shareholders: The grant aligns the director's interests with shareholders, potentially leading to better long-term performance. However, it also represents a dilution of ownership over time as shares vest.
• Employees: While not directly impacting all employees, such grants to leadership can signal stability and a commitment to long-term value creation within the company.

Next Steps

• The granted shares will vest in four equal annual installments following the grant date of May 22, 2025.

Key Dates

Recommendation

Keywords

Houlihan Lokey, HLI, SEC Form 4, Insider Transaction, Stock Grant, Equity Compensation, Director Compensation, Class B Common Stock, Incentive Award Plan