Form 4: MicroStrategy Director Jarrod M. Patten Receives Stock Options and Restricted Stock Units
SEC Form 4 Filing
Director Jarrod M. Patten received stock options and restricted stock units from MicroStrategy as part of the company's 2023 Equity Incentive Plan.
Summary
- On May 31, 2024, Jarrod M. Patten, a director of MicroStrategy Incorporated, received stock options and restricted stock units (RSUs) as part of the company's 2023 Equity Incentive Plan.
- Mr. Patten acquired 497 Class A Common Stock RSUs, which vested immediately on the same day.
- He also received a stock option to purchase 139 shares of Class A Common Stock, exercisable starting May 31, 2025, and 98 RSUs scheduled to vest on May 31, 2025.
- These grants are part of the annual automatic grant of equity awards to non-employee directors, with an aggregate fair value of $300,000 split evenly between RSUs and options.
- Mr. Patten also owns multiple director stock options granted in previous years, with various exercise prices and expiration dates.
Sentiment
Score: 7
Explanation: The document reflects a standard compensation practice. The sentiment is neutral to slightly positive as it indicates continued alignment of director and shareholder interests.
Positives
- The equity grants align director interests with those of shareholders.
- The vesting schedule encourages long-term commitment from the director.
- The 2023 Equity Incentive Plan was approved by stockholders, indicating support for the compensation structure.
Future Outlook
The director will continue to receive annual equity grants as part of the 2023 Equity Incentive Plan.
Industry Context
Equity compensation is a common practice for directors of publicly traded companies to align their interests with those of shareholders. The size and structure of the grant are typical for companies of MicroStrategy's size and industry.
Comparison to Industry Standards
- Director compensation packages typically include a mix of cash and equity.
- Companies like Block, Inc. and Coinbase Global, Inc., which operate in related technology sectors, also utilize equity grants as part of their director compensation.
- The specific value and vesting schedules can vary based on company size, performance, and industry benchmarks.
Stakeholder Impact
- Shareholders: Aligns director interests with shareholder value.
- Employees: May have a minor impact on overall equity dilution.
- Director: Provides compensation and incentive for service.
Key Dates
| Date | Description |
|---|---|
| May 31, 2016 | 1,250 shares of a director stock option vested. |
| May 31, 2017 | 1,250 shares of two director stock options vested. |
| May 31, 2018 | 1,250 shares of three director stock options vested. |
| May 31, 2019 | 1,250 shares of four director stock options vested. |
| May 31, 2020 | 1,250 shares of five director stock options vested. |
| May 31, 2021 | 1,250 shares of six director stock options vested. |
| May 31, 2022 | 1,250 shares of seven director stock options vested. |
| May 31, 2023 | 1,250 shares of eight director stock options vested. |
| May 31, 2024 | Date of transaction: Grant of RSUs and stock options; vesting of previous stock options. |
| May 31, 2025 | Expiration date of a director stock option; vesting date for new stock options and RSUs. |
| May 31, 2026 | Expiration date of a director stock option; vesting date for a director stock option. |
| May 31, 2027 | Expiration date of a director stock option. |
| May 31, 2028 | Expiration date of a director stock option. |
| May 31, 2029 | Expiration date of a director stock option. |
| May 31, 2030 | Expiration date of a director stock option. |
| May 31, 2031 | Expiration date of a director stock option. |
| May 31, 2032 | Expiration date of a director stock option. |
| May 31, 2033 | Expiration date of a director stock option. |
| May 31, 2034 | Expiration date of a director stock option. |
| June 04, 2024 | Date of signature for the Form 4 filing. |
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