Form 4: ODP Corp Executive Gerry P. Smith Reports Changes in Beneficial Ownership
SEC Form 4 Filing
Gerry P. Smith, Chief Executive Officer of ODP Corp, reports changes in beneficial ownership of company stock due to vesting of restricted stock units and shares withheld for tax obligations.
Summary
- On March 10, 2025, Gerry P. Smith, the CEO of ODP Corp, reported changes in his beneficial ownership of the company's common stock.
- He acquired 179,674 shares through restricted stock units (RSUs) that vest in three equal installments on March 10 of 2026, 2027, and 2028.
- Additionally, 25,106 performance-based restricted stock units vested on the same date.
- A total of 27,865 shares were withheld by the issuer to cover tax obligations related to the vesting of restricted shares and performance-based stock units.
- These shares were withheld from grants issued on March 10, 2023, March 10, 2022, and from the payout of performance-based stock units.
- Following these transactions, Smith's total direct ownership amounts to 1,009,962 shares of ODP Corp common stock.
Sentiment
Score: 6
Explanation: The document reflects standard executive compensation practices. The vesting of RSUs is a positive sign, but the tax withholding is neutral.
Positives
- The vesting of restricted stock units and performance-based stock units suggests that the executive is incentivized to improve company performance over the long term.
Future Outlook
The vesting schedule of the restricted stock units indicates a multi-year incentive structure for the CEO.
Industry Context
Executive stock ownership is a common practice to align management's interests with those of shareholders. Vesting schedules are designed to incentivize long-term performance.
Comparison to Industry Standards
- Executive compensation packages often include a mix of salary, bonus, and equity-based compensation, such as stock options and restricted stock units.
- The vesting schedules for RSUs typically range from three to five years, aligning with industry norms.
- Companies like Staples (now Sycamore Partners) and Amazon also use equity-based compensation extensively for their executives.
Stakeholder Impact
- Shareholders may view the vesting of RSUs as a positive sign, aligning management's interests with long-term company performance.
- Employees may see this as a positive sign of stability.
Key Dates
| Date | Description |
|---|---|
| March 10, 2022 | Date of a previous grant from which shares were withheld for tax obligations. |
| March 10, 2023 | Date of a previous grant from which shares were withheld for tax obligations. |
| March 10, 2025 | Date of the reported transactions, including RSU grants, vesting of performance-based units, and tax withholding. |
| March 10, 2026 | First vesting date for one-third of the RSUs granted on March 10, 2025. |
| March 10, 2027 | Second vesting date for one-third of the RSUs granted on March 10, 2025. |
| March 10, 2028 | Final vesting date for one-third of the RSUs granted on March 10, 2025. |
| March 12, 2025 | Date of signature by Attorney-in-Fact. |
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