Form 4: Leslie's Grants Options, RSUs to General Counsel

Leslie's, Inc. granted stock options and restricted stock units to Benjamin Lindquist, SVP, General Counsel and Corporate Secretary, with vesting tied to continued employment.

Summary

• Benjamin Lindquist, SVP, General Counsel and Corporate Secretary of Leslie's, Inc. (LESL), was granted 6,010 options to purchase shares and 6,010 Restricted Stock Units (RSUs) on December 23, 2025.
• The options have an exercise price of $1.65 per share and will vest with respect to 33.3% of the total shares on December 23, 2026, December 23, 2027, and December 23, 2028, contingent on continued employment.
• The options will expire on the earliest of December 23, 2035, twelve months after termination due to death, immediately upon termination for 'cause,' or ninety days after termination for other reasons.
• Each RSU represents the contingent right to receive one share of the Issuer's Common Stock upon vesting.
• The 6,010 RSUs will vest in equal installments on December 23, 2026, December 23, 2027, and December 23, 2028, also subject to Mr. Lindquist's continuous employment.
• Following these transactions, Mr. Lindquist beneficially owns 6,010 options and 8,627 RSUs.
• The RSU beneficial ownership number reflects adjustments made in connection with a 1-for-20 reverse stock split of the Issuer's Common Stock, effective September 29, 2025.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive, reflecting standard executive compensation practices designed for retention and alignment of interests. The grants are a positive for the executive, and the vesting schedule implies stability. The mention of a reverse stock split is a factual adjustment rather than a direct sentiment indicator for this specific filing, but it can carry a slightly negative connotation in broader market context.

Positives

• The grants of stock options and RSUs serve as an incentive for Benjamin Lindquist, aligning his interests with long-term shareholder value.
• The vesting schedule over three years promotes executive retention and stability within the company's leadership.

Negatives

• The reverse stock split effective September 29, 2025, which adjusted RSU beneficial ownership, can sometimes be perceived negatively by the market as it often indicates a company's efforts to boost its share price or meet listing requirements.

Risks

• The vesting of both options and RSUs is contingent upon Mr. Lindquist's continuous employment, meaning the benefits are forfeited if employment ceases before vesting dates.
• Options have specific expiration conditions tied to employment termination, which could result in forfeiture if not exercised within the specified windows.

Future Outlook

The grants of options and RSUs with multi-year vesting schedules indicate an expectation of continued employment and contributions from Benjamin Lindquist through at least December 2028. This suggests a focus on long-term executive retention and alignment with future company performance.

Management Comments

• Options to purchase shares will vest and become exercisable with respect to 33.3% of total shares on each of December 23, 2026, December 23, 2027, and December 23, 2028, subject to Mr. Lindquist's continued employment through the applicable vesting date.
• All of the Options will expire upon the earliest of (i) December 23, 2035; (ii) twelve months after Mr. Lindquist's termination of employment or service due to death; (iii) immediately upon termination of Mr. Lindquist's employment or service for 'cause,' or (iv) ninety days after Mr. Lindquist's termination of employment or service for any reason not specified in the foregoing (ii) or (iii).
• Each Restricted Stock Unit ('RSU') represents the contingent right to receive, upon vesting of the RSU, one share of the Issuer's Common Stock.
• A grant of RSUs, of which 6,010 will vest in equal installments on December 23, 2026, December 23, 2027, and December 23, 2028, subject to Mr. Lindquist's continuous employment or services with the Issuer or an affiliate until the applicable vesting date.
• Reflects adjustments made in connection with the 1-for-20 reverse stock split of the Issuer's Common Stock, effective September 29, 2025.

Industry Context

Executive compensation, particularly through equity grants like stock options and RSUs, is a standard practice across industries to attract, retain, and incentivize key personnel. The multi-year vesting schedule is typical for long-term incentive plans, aiming to align executive performance with shareholder interests over an extended period. The reverse stock split, while not directly related to compensation, is a corporate action that can impact share price and perception, often seen in companies aiming to improve their stock's marketability or meet exchange listing requirements.

Related Party Transactions

• The grant of stock options and Restricted Stock Units (RSUs) to Benjamin Lindquist, an officer of Leslie's, Inc., constitutes a related party transaction as it involves compensation from the company to a key executive.

Stakeholder Impact

• Shareholders: The grants represent a form of executive compensation, which can lead to dilution upon exercise/vesting and is an expense to the company. However, it also aims to align executive incentives with shareholder value creation.
• Employees: The grants to a senior executive may signal stability in leadership and a commitment to retaining key talent.
• Benjamin Lindquist (Executive): Directly benefits from the potential future value of the options and RSUs, contingent on company performance and continued employment.

Next Steps

• Benjamin Lindquist's continued employment with Leslie's, Inc. through the vesting dates.
• Vesting of options and RSUs on December 23, 2026, December 23, 2027, and December 23, 2028.
• Potential exercise of vested options by Mr. Lindquist before their expiration date of December 23, 2035.

Key Dates

Keywords

Leslie's Inc., LESL, Form 4, insider transaction, stock options, restricted stock units, RSUs, executive compensation, equity grant, Benjamin Lindquist, corporate governance, reverse stock split