Form 4: Magnite Chief Technology Officer Receives Stock and Performance Units

Magnite's Chief Technology Officer, David Buonasera, was granted restricted stock units and performance stock units on January 9, 2025.

Summary

• David Buonasera, Chief Technology Officer of Magnite, Inc., received 72,384 restricted stock units and 24,366 performance stock units on January 9, 2025.
• The restricted stock units vest over time, with the first portion vesting on February 15, 2026, and subsequent portions vesting quarterly until November 15, 2028, with a final portion vesting on February 15, 2029.
• The performance stock units will vest on the three-year anniversary of the grant date, with the number of shares vesting dependent on Magnite's total shareholder return relative to the Russell 2000 index over the three-year period starting January 1, 2025.
• The performance stock units can vest at 0% to 150% of the target number of units based on performance.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally positive for aligning management and shareholder interests. The performance-based component adds a layer of positive incentive.

Positives

• The equity grants align the executive's interests with those of the shareholders.
• The vesting schedule for the restricted stock units encourages long-term commitment from the executive.
• The performance-based vesting of the performance stock units incentivizes the executive to drive company performance.

Risks

• The vesting of the performance stock units is dependent on the company's performance relative to the Russell 2000 index, which introduces market risk.
• The executive's employment termination under certain circumstances could lead to accelerated vesting of the restricted stock units.

Future Outlook

The performance stock units will vest based on the company's total shareholder return relative to the Russell 2000 index over a three-year period starting January 1, 2025.

Industry Context

Equity grants are a common practice in the technology industry to attract and retain top talent and align their interests with those of the shareholders.

Comparison to Industry Standards

• Equity compensation is a standard practice for technology companies, with vesting schedules and performance-based metrics being common.
• Companies like The Trade Desk and PubMatic also use stock options and restricted stock units as part of their compensation packages.
• The use of total shareholder return relative to an index like the Russell 2000 is a common performance metric for vesting performance stock units.

Stakeholder Impact

• Shareholders may view the equity grants as a positive sign of aligning management interests with company performance.
• Employees may see the equity grants as a sign of the company's commitment to its leadership.

Key Dates

Keywords

stock units, performance stock units, restricted stock units, equity compensation, executive compensation, Magnite, vesting, TSR, Russell 2000