Form 4: Lincoln Educational Services CFO Receives Stock Grants with Performance and Time-Based Vesting

Brian K. Meyers, CFO and Treasurer of Lincoln Educational Services, received grants of restricted common stock under the company's 2020 Long-Term Incentive Plan, subject to both time-based and performance-based vesting conditions.

Summary

• Brian K. Meyers, CFO and Treasurer of Lincoln Educational Services, received 36,151 shares of restricted common stock under the 2020 Long-Term Incentive Plan on February 19, 2025.
• 50% of these shares are subject to time-based vesting, and the other 50% are subject to performance-based vesting.
• The time-based shares will vest in substantially equal annual tranches over three years, starting March 1, 2026.
• The performance-based shares will vest in annual tranches over three years, with the number of shares vesting determined by the percentage of the target achieved; up to 200% of the performance-based shares may be issued if the target is exceeded.
• Meyers also received 19,466 shares of restricted common stock, fully subject to performance-based vesting based on the company's achievement of metrics set for 2027.
• These shares will vest, if at all, on March 1, 2028, with the number of shares vesting determined by the percentage of the target achieved; the reported number is the maximum number of shares that may vest.

Sentiment

Score: 7

Explanation: The document describes a routine executive compensation event. The sentiment is neutral to slightly positive as it incentivizes management.

Positives

• The grants of restricted stock align the CFO's interests with the long-term performance of the company.
• The performance-based vesting encourages the achievement of company goals and metrics.
• The potential for additional shares to be issued if targets are exceeded provides a strong incentive for high performance.

Risks

• The performance-based shares may not vest if the company does not achieve the set metrics.
• The value of the restricted stock is subject to the market price of Lincoln Educational Services' common stock.

Future Outlook

The vesting of the restricted stock is contingent upon future performance and continued employment, aligning executive compensation with the company's long-term success.

Industry Context

Stock grants are a common practice in the education services industry to incentivize and retain key executives. Performance-based vesting is used to align executive compensation with the achievement of specific company goals.

Comparison to Industry Standards

• Companies like Adtalem Global Education and Strategic Education, Inc. also utilize stock grants and long-term incentive plans for their executives.
• The vesting schedules and performance metrics are typically tailored to the specific goals and priorities of each company.
• The size of the grant is comparable to grants given to executives at similar companies.

Stakeholder Impact

• Shareholders may view the stock grants positively as they align management's interests with the company's performance.
• Employees may see the grants as a sign of the company's commitment to its leadership team.

Key Dates

Keywords

restricted stock, performance-based vesting, time-based vesting, Lincoln Educational Services, Brian K. Meyers, CFO, stock grant, incentive plan