Form 4: Newmark COO Alvarado Granted Exchange Rights for Partnership Units

Newmark Group's Chief Operating Officer, Luis Alvarado, received exchange rights for previously awarded partnership units, convertible into Class A common stock, with the filing noting an administrative delay in reporting.

Summary

• Luis Alvarado, Newmark Group, Inc.'s Chief Operating Officer, was granted exchange rights for previously awarded units of Newmark Holdings, L.P.
• On May 2, 2025, Alvarado received 1,219 exchange rights with respect to 1,219 previously awarded units of Newmark Holdings that were non-exchangeable.
• On July 28, 2025, Alvarado received an additional 1,220 exchange rights with respect to 1,220 previously awarded units of Newmark Holdings that were non-exchangeable.
• These exchange rights are convertible into Newmark Group Class A common stock at an exchange ratio of 0.9248 as of November 17, 2025.
• Following these transactions, Alvarado beneficially owns 7,731 derivative securities (Newmark Holdings Exchangeable Limited Partnership Interests).
• The grants were made in accordance with a monetization schedule approved before Alvarado became an executive officer.
• The reporting of these transactions was delayed due to an inadvertent administrative error.

Sentiment

Score: 6

Explanation: The grant of exchange rights is a positive for executive compensation and retention, aligning interests. However, the administrative delay in reporting is a minor negative, indicating a slight compliance oversight.

Positives

• The grant of exchange rights enhances the liquidity and value of previously awarded compensation for the Chief Operating Officer, potentially strengthening executive retention and alignment with shareholder interests.
• The monetization schedule for these grants was approved prior to the reporting person becoming an executive officer, indicating a pre-planned compensation structure.

Negatives

• The filing of the Form 4 was reported late due to an inadvertent administrative delay, which could indicate minor internal process inefficiencies in compliance.

Risks

• An inadvertent administrative delay in reporting insider transactions, as noted in the filing, suggests a minor operational risk in compliance procedures.

Future Outlook

The exchange rights granted are exercisable at any time for shares of Class A common stock, subject to the then-current exchange ratio, which was 0.9248 as of November 17, 2025.

Management Comments

• The grant of exchange rights was made in accordance with a monetization schedule approved before the reporting person became an executive officer of the Company.
• The reporting is being reported late due to an inadvertent administrative delay.

Industry Context

This Form 4 filing reflects a standard executive compensation event, where an officer receives additional liquidity for previously awarded equity-linked units. Such grants are common practice in the financial services and real estate industries to align executive incentives with long-term company performance.

Stakeholder Impact

• Shareholders: The grant of exchange rights to a key executive like the COO can be viewed as a mechanism to align management's interests with shareholder value creation, potentially encouraging long-term performance.
• Employees: Such compensation structures can serve as a benchmark for executive incentives within the company.

Next Steps

• Luis Alvarado may exercise the exchange rights at any time to convert Newmark Holdings Exchangeable Limited Partnership Interests into Newmark Group Class A common stock.

Key Dates

Keywords

Newmark Group, NMRK, Luis Alvarado, Form 4, Insider Transaction, Executive Compensation, Exchange Rights, Partnership Interests, Class A Common Stock, Corporate Governance