Form 4: MillerKnoll Executive Acquires Restricted Stock Units

Jacqueline Hourigan Rice, General Counsel & Corporate Secretary of MillerKnoll, Inc., reports acquisition of restricted stock units.

Summary

• Jacqueline Hourigan Rice, General Counsel & Corporate Secretary of MillerKnoll, Inc., reported the acquisition of restricted stock units (RSUs) on July 16, 2024.
• She acquired 13,968 RSUs that vest over three years and 27,367 RSUs that cliff vest on July 22, 2025.
• Following these transactions, Rice beneficially owns 33,855 RSUs subject to three-year vesting and 61,222 RSUs subject to cliff vesting.
• The RSUs represent a contingent right to receive one share of MLKN common stock each.
• The grant of 27,367 RSUs was in lieu of a cash bonus under the company's Annual Incentive Plan.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard executive compensation practices and aligns executive interests with shareholders.

Positives

• The executive's decision to receive RSUs instead of a cash bonus demonstrates confidence in the company's future performance.
• The vesting schedules of the RSUs incentivize long-term commitment from the executive.

Future Outlook

The vesting of the RSUs is contingent upon continued service with the company.

Industry Context

Executive compensation through equity grants is a common practice in publicly traded companies to align management's interests with those of shareholders.

Comparison to Industry Standards

• Equity-based compensation is a standard practice among publicly traded companies to incentivize executives and align their interests with shareholders.
• Vesting schedules, such as the three-year vesting and cliff vesting structures used by MillerKnoll, are common mechanisms to ensure long-term commitment from executives.
• Comparing the size of the RSU grants to those of executives at comparable furniture and design companies (e.g., Herman Miller, Steelcase) would provide further context on the competitiveness of MillerKnoll's compensation practices.

Stakeholder Impact

• The RSU grants align the executive's interests with those of shareholders, potentially driving long-term value creation.
• Employees may view the equity grants as a positive sign of the company's commitment to its leadership.

Key Dates