Form 4: Madison Square Garden Entertainment Corp. EVP and CFO Michael Grau Reports Stock Transactions
SEC Form 4
Michael Grau, EVP and CFO of Madison Square Garden Entertainment Corp., reports the vesting and settlement of restricted stock units, along with associated tax withholding.
Summary
- On September 13, 2024, Michael Grau, the EVP and CFO of Madison Square Garden Entertainment Corp. (MSGE), reported transactions involving Class A Common Stock.
- These transactions involved the vesting and settlement of restricted stock units (RSUs) granted on April 24, 2024, under the company's 2023 Employee Stock Plan.
- Specifically, 1,780 and 3,417 RSUs vested and were settled, each representing the right to receive one share of Class A Common Stock.
- Additionally, 1,872 shares were withheld to satisfy tax obligations related to the vesting of these RSUs at a price of $40.29.
- Following these transactions, Grau directly owns 3,325 shares of Class A Common Stock and 3,560 and 6,835 restricted stock units.
Sentiment
Score: 6
Explanation: The document is a routine filing related to executive compensation. It doesn't contain information that would significantly impact investor sentiment positively or negatively.
Positives
- The vesting of RSUs indicates a form of compensation and alignment of interests between the executive and the company's performance.
Future Outlook
The remaining RSUs are scheduled to vest and settle on September 15, 2025, and September 15, 2026.
Industry Context
Executive compensation through stock options and RSUs is a common practice in publicly traded companies to incentivize performance and align management's interests with those of shareholders.
Comparison to Industry Standards
- Stock-based compensation is a standard practice across the entertainment and media industry.
- Companies like Live Nation Entertainment and Disney also utilize RSUs and stock options as part of their executive compensation packages.
- The vesting schedules and terms of these grants are typically benchmarked against industry peers to ensure competitiveness.
Stakeholder Impact
- The vesting of RSUs dilutes existing shareholders' equity to a minor extent.
Key Dates
| Date | Description |
|---|---|
| April 24, 2024 | Date the restricted stock units (RSUs) were granted under the Madison Square Garden Entertainment Corp. 2023 Employee Stock Plan. |
| September 13, 2024 | Date of the reported transactions, including the vesting and settlement of RSUs and tax withholding. |
| September 15, 2025 | Scheduled vesting and settlement date for one-third of the RSUs. |
| September 15, 2026 | Scheduled vesting and settlement date for the remaining one-third of the RSUs. |
| September 17, 2024 | Date of signature on the Form 4 filing. |
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