Form 4: Intercontinental Exchange Executive Andrew J. Surdykowski Reports Acquisition of Restricted Stock Units

Andrew J. Surdykowski, General Counsel of Intercontinental Exchange, Inc., reports the acquisition of 3,141 restricted stock units on February 10, 2025.

Summary

• On February 10, 2025, Andrew J. Surdykowski, General Counsel of Intercontinental Exchange, Inc. (ICE), acquired 3,141 restricted stock units (RSUs).
• These RSUs vest over three years, with 1/3 vesting on each anniversary of the award date.
• Following the transaction, Surdykowski beneficially owns an aggregate of 50,903 shares of common stock, including vested shares, unvested RSUs, and unvested performance-based restricted stock units (PSUs) for which the performance period has been satisfied.
• The number includes 40,584 shares of common stock, 3,141 unvested RSUs, and 7,178 unvested PSUs.
• The satisfaction of performance-based conditions for certain PSUs tied to EBITDA and total shareholder return will be determined in future periods and reported at the time of vesting.

Sentiment

Score: 7

Explanation: The document reflects a routine executive compensation matter, indicating a stable and ongoing business operation. The sentiment is neutral to slightly positive as it suggests alignment of executive and shareholder interests.

Positives

• The acquisition of restricted stock units aligns the executive's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the executive.

Risks

• The value of the restricted stock units is subject to the performance of Intercontinental Exchange's stock price.
• The vesting of performance-based restricted stock units is contingent on the company achieving certain financial targets.

Future Outlook

The vesting of RSUs and PSUs is subject to continued employment and, in the case of PSUs, the achievement of performance targets related to EBITDA and total shareholder return over specified periods.

Industry Context

Executive compensation through equity grants is a common practice in the financial services industry to align management's interests with those of shareholders and incentivize long-term value creation.

Comparison to Industry Standards

• Companies like Nasdaq, CME Group, and London Stock Exchange Group also utilize equity-based compensation for their executives.
• The vesting schedules and performance metrics associated with these grants are typically aligned with industry best practices to ensure effective incentivization and retention of key personnel.
• The specific terms of ICE's equity grants, such as the vesting period and performance targets, are likely benchmarked against those of its peers to remain competitive in attracting and retaining talent.

Stakeholder Impact

• Shareholders: The acquisition of restricted stock units aligns the executive's interests with those of the shareholders, potentially leading to better company performance.
• Employees: The equity grants can serve as a motivation for other employees, as it demonstrates the company's commitment to rewarding performance.

Next Steps

• The vesting of the restricted stock units will occur over the next three years.
• The satisfaction of performance-based conditions for PSUs will be determined in future periods.

Key Dates