Form 4: MediaAlpha Executive Steven Yi Reports Acquisition of Class A Common Stock

Steven Yi, a director, officer, and 10% owner of MediaAlpha, Inc., reported the acquisition of Class A Common Stock through restricted stock units (RSUs) and performance-based restricted stock units (PRSUs).

Summary

• On March 15, 2024, Steven Yi, a key executive at MediaAlpha, Inc., reported acquiring shares of Class A Common Stock.
• The acquisitions were made through the granting of restricted stock units (RSUs) and performance-based restricted stock units (PRSUs) under the company's Omnibus Incentive Plan.
• Specifically, 6,400 RSUs were granted in lieu of cash salary, 291,400 RSUs were granted under the Omnibus Incentive Plan, and 43,750 PRSUs were granted based on performance metrics.
• The RSUs vest at different times, with some vesting on June 15, 2024, and others vesting quarterly over four years, subject to continued employment.
• The PRSUs will vest based on the achievement of certain financial measures determined by the Issuer's Compensation Committee.
• Following these transactions, Yi's total beneficial ownership of Class A Common Stock is 2,347,575 shares.

Sentiment

Score: 7

Explanation: The document reflects a neutral to slightly positive sentiment as it details standard executive compensation practices that align management interests with company performance. The granting of RSUs and PRSUs indicates confidence in future growth and achievement of financial targets.

Positives

• The granting of RSUs and PRSUs aligns executive compensation with company performance and shareholder value.
• The vesting schedules of the RSUs and PRSUs incentivize continued employment and achievement of financial goals.

Risks

• The vesting of PRSUs is contingent upon the achievement of certain financial measures, which may not be met.
• The value of the RSUs and PRSUs is subject to the market price of MediaAlpha's Class A Common Stock, which can fluctuate.

Future Outlook

The vesting of RSUs and PRSUs is contingent upon continued employment and the achievement of certain financial measures, indicating a focus on long-term performance and retention.

Industry Context

This filing is a routine disclosure of executive compensation in the form of stock grants, which is a common practice in publicly traded companies to align management interests with those of shareholders.

Comparison to Industry Standards

• Stock-based compensation is a standard practice among publicly traded companies, particularly in the tech and media sectors.
• Companies like Google (Alphabet Inc.) and Meta Platforms also utilize RSUs and performance-based equity grants to incentivize and retain key executives.
• The vesting schedules and performance metrics associated with these grants are typically aligned with industry benchmarks and company-specific goals.

Stakeholder Impact

• Shareholders may view the granting of RSUs and PRSUs positively, as it aligns executive compensation with company performance.
• Employees may be motivated by the potential for similar stock-based compensation opportunities.
• The transactions do not have a direct impact on customers, suppliers, or creditors.

Key Dates