Form 4: Optical Cable Corp Director Receives Stock Award

Randall H. Frazier, a Director at Optical Cable Corp, received an award of 3,733 common shares as part of his annual retainer, with vesting scheduled for June 17, 2027.

Summary

• Randall H. Frazier, a Director of Optical Cable Corp, was awarded 3,733 common shares on June 16, 2026.
• This award is part of his compensation for the 2026-2027 board year, based on a $50,000 retainer value.
• The shares were valued at $13.393 per share at the time of the award.
• These shares are subject to forfeiture and will fully vest on June 17, 2027, unless otherwise specified in the grant award.
• Following this transaction, Mr. Frazier beneficially owns 50,604 shares of common stock.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, as it represents routine director compensation and does not contain new financial performance data or strategic shifts.

Positives

• Director compensation is being provided in the form of company stock, aligning director interests with shareholders.
• The award of 3,733 common shares indicates continued investment in the company by its leadership.
• The total beneficial ownership of 50,604 shares by the director suggests a significant personal stake in the company's performance.

Negatives

• The shares awarded are subject to forfeiture until June 17, 2027, indicating a potential risk of losing these shares if vesting conditions are not met.
• The award is based on a retainer value, and the actual market value of the shares could fluctuate before vesting.

Risks

• The primary risk is the forfeiture of the awarded shares if the vesting conditions are not met by June 17, 2027.
• Market price volatility of Optical Cable Corp's common stock could impact the ultimate value of the award upon vesting.

Future Outlook

The filing indicates that the awarded shares will vest on June 17, 2027, subject to forfeiture conditions. This suggests a forward-looking commitment from the director to the company's performance over the next year.

Management Comments

• Directors receive stock and cash as compensation for their services.
• Director received an award of 3,733 common shares issued under the Optical Cable Corporation 2017 Stock Incentive Plan, as amended, for the stock portion of the annual retainer for the 2026-2027 board year based on a retainer value of $50,000 at a trading price per share of $13.393.
• Unless otherwise set forth in the grant award, the 3,733 common shares are subject to forfeiture until they fully vest on June 17, 2027.

Industry Context

StockSavvy.ai notes that the use of stock awards for director compensation is a common practice in the telecommunications and technology sectors, aiming to align executive interests with long-term shareholder value. This aligns with industry trends of incentivizing leadership through equity.

Related Party Transactions

• The award of 3,733 common shares to Director Randall H. Frazier is a related party transaction, representing compensation for his services as a director.

Stakeholder Impact

• Shareholders: The award aligns director interests with shareholders by providing equity. However, the forfeiture clause means the full benefit is contingent on continued service and company performance.
• Employees: This filing does not directly impact employees, but it reflects the company's compensation practices for its board.
• Management: The filing details compensation for a director, reinforcing the company's governance structure.

Next Steps

• The awarded shares are expected to vest on June 17, 2027.
• The director will continue to hold 50,604 shares of common stock.

Key Dates

Keywords

Optical Cable Corp, OCC, Form 4, Director Compensation, Stock Award, Beneficial Ownership, Vesting, Securities Exchange Act