Form 4: Jack in the Box SVP, CHF Supply Chain Officer Receives Retention Award and Performance-Based Restricted Stock Units

Carl Mount, SVP, CHF Supply Chain Officer at Jack in the Box Inc., reports the acquisition of restricted stock units and performance-based restricted stock units.

Summary

• Carl Mount, SVP, CHF Supply Chain Officer at Jack in the Box Inc., filed a Form 4 on May 2, 2025, reporting transactions from May 1, 2025.
• Mount acquired 10,085 shares of common stock as a one-time retention award of restricted stock units.
• These restricted stock units vest in three equal installments one year from the grant date, with after-tax net shares subject to a 50% holding requirement until the executive meets their multiple of salary stock ownership requirement.
• Mount also acquired 10,085 performance-based restricted stock units (PSUs) that are eligible to become earned based on achievement of two stock price appreciation hurdles over a three-year performance period.
• 150% of the PSUs are earned if the stock price reaches $37.19, and 200% are earned if the stock price reaches $49.58.
• The earned PSUs, if any, will vest at the completion of the three-year performance period, provided Mount remains employed with the company.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard executive compensation practices designed to align management interests with shareholder value. The grants themselves are neither overwhelmingly positive nor negative.

Positives

• The retention award provides an incentive for the executive to remain with the company.
• The performance-based restricted stock units align the executive's interests with those of the shareholders by incentivizing stock price appreciation.

Risks

• The PSUs may not vest if the stock price targets are not met within the three-year performance period.
• The executive must remain employed with the company through the end of the performance period for the PSUs to vest.

Future Outlook

The vesting of the PSUs is contingent upon the achievement of stock price targets over the next three years and continued employment of the reporting person.

Industry Context

Granting stock-based compensation is a common practice in the restaurant industry to align executive compensation with company performance and shareholder value.

Comparison to Industry Standards

• Stock-based compensation is a common practice among publicly traded companies, including restaurant chains like McDonald's (MCD), Restaurant Brands International (QSR), and Wendy's (WEN).
• The specific terms of the grants, such as vesting schedules and performance metrics, vary depending on the company's compensation philosophy and strategic goals.
• Performance-based equity awards are often tied to metrics such as revenue growth, profitability, and total shareholder return, in addition to stock price appreciation.

Stakeholder Impact

• Shareholders may view the performance-based awards positively as they incentivize management to increase shareholder value.
• Employees may see the awards as a sign of the company's commitment to its executives.

Key Dates

Keywords

Form 4, restricted stock units, performance-based restricted stock units, PSU, stock price appreciation, retention award, Jack in the Box, Carl Mount, beneficial ownership