Form 4: KeyCorp Director Richard J. Tobin Reports Acquisition of Deferred Shares

Director Richard J. Tobin reports acquiring 1,492 deferred shares of KeyCorp, convertible to common shares, through a director's fee deferral plan.

Summary

• Richard J. Tobin, a director of KeyCorp, filed a Form 4 on October 2, 2024, reporting a transaction on September 30, 2024.
• The transaction involved the acquisition of 1,492 deferred shares under the Directors' Deferred Share Sub-Plan to the KeyCorp Amended and Restated 2019 Equity Compensation Plan.
• These deferred shares are the economic equivalent of common shares and were acquired as a result of deferring directors' fees.
• The price per share was $16.75.
• Tobin's total holdings following the transaction include 55,525 deferred shares, including approximately 680 dividend-equivalent deferred shares accrued in September 2024.
• Payment of the deferred shares is deferred until the earlier of January 1, 2028, or the death of the participant.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The director's decision to acquire deferred shares suggests confidence in the company's future, but it's a routine transaction.

Positives

• The acquisition of deferred shares by a director signals confidence in the company's future performance.
• The Directors' Deferred Share Sub-Plan allows directors to align their interests with those of shareholders.

Future Outlook

Payment of the deferred shares has been deferred until the earlier of January 1, 2028, or the death of the participant.

Industry Context

Directors deferring fees into company stock is a common practice in corporate governance, aligning director interests with shareholder value. This is especially common in the financial services industry.

Comparison to Industry Standards

• Deferred compensation plans for directors are a common practice among publicly traded companies, particularly in the financial sector.
• Companies like JPMorgan Chase and Bank of America also offer similar deferred compensation plans to their directors, allowing them to receive company stock in lieu of cash fees.
• The specific terms of these plans, such as the deferral period and the conversion rate to common shares, can vary across companies.

Stakeholder Impact

• The acquisition of deferred shares by a director can positively influence shareholder sentiment.

Key Dates