Form 4: Frederic V. Salerno Reports Acquisition of Madison Square Garden Entertainment Corp. Restricted Stock Units

Director Frederic V. Salerno reports the acquisition of 3,144 Restricted Stock Units (RSUs) of Madison Square Garden Entertainment Corp. in lieu of cash compensation.

Summary

• On February 18, 2025, Frederic V. Salerno, a director of Madison Square Garden Entertainment Corp. (MSGE), acquired 3,144 Restricted Stock Units (RSUs).
• These RSUs were granted in lieu of cash compensation for director fees under the company's 2023 Stock Plan for Non-Employee Directors.
• Each RSU represents the right to receive one share of Class A Common Stock or the cash equivalent.
• The RSUs are fully vested on the grant date and will be settled in stock or cash approximately 90 days after separation from service.
• Following the transaction, Salerno beneficially owns 19,454 derivative securities.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The transaction reflects standard compensation practices and aligns director interests with shareholders. There are no immediate negative implications.

Positives

• The acquisition of RSUs by a director signals confidence in the company's future performance.
• Using RSUs in lieu of cash preserves cash for the company.

Future Outlook

The RSUs will be settled in stock or cash approximately 90 days after separation from service.

Industry Context

This is a standard practice for compensating board members, aligning their interests with those of shareholders.

Comparison to Industry Standards

• Granting restricted stock units (RSUs) to directors as part of their compensation is a common practice among publicly traded companies, including those in the entertainment and media industry.
• Companies like Live Nation Entertainment (LYV) and Warner Bros. Discovery (WBD) also utilize equity-based compensation for their board members to align their interests with long-term shareholder value.
• The specific number of RSUs granted and the vesting schedules can vary based on company size, performance, and industry benchmarks.

Stakeholder Impact

• The transaction aligns the director's interests with those of shareholders.
• The use of RSUs instead of cash may be viewed positively by shareholders as it preserves the company's cash reserves.

Key Dates