Form 4: Paramount Global CEO Robert Bakish Reports Changes in Beneficial Ownership

Robert Bakish, President and CEO of Paramount Global, reports the acquisition and disposal of Class B common stock and Restricted Share Units (RSUs) related to vesting and tax obligations.

Summary

• Robert Bakish, the President and CEO of Paramount Global, filed a Form 4 detailing changes in his beneficial ownership of Paramount Global securities.
• On March 1, 2024, Bakish acquired 115,640 Class B common stock shares upon the vesting of RSUs granted on March 1, 2023.
• He also acquired 61,997 Class B common stock shares upon the vesting of RSUs granted on March 1, 2022.
• 76,986 shares were withheld by Paramount Global to cover tax liabilities associated with the vesting of the RSUs at a price of $10.95 per share.
• Bakish also acquired 646,726 RSUs that will vest in three equal annual installments beginning March 1, 2025.
• Following these transactions, Bakish directly owns 911,283 shares of Class B common stock.
• He also has indirect ownership through his daughter (131 shares), his daughter (36 shares), and his 401(k) (3,093 shares).

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing, so the sentiment is neutral. The vesting of RSUs is a positive sign of alignment with company performance, but the tax withholding is a neutral event.

Positives

• The granting of new RSUs to the CEO aligns his interests with the long-term performance of the company.
• The dividend reinvestment program allows for the accumulation of additional shares.

Negatives

• The withholding of shares to cover tax liabilities reduces the number of shares the CEO ultimately receives.

Risks

• The value of the RSUs and Class B common stock is subject to market fluctuations, which could impact the CEO's overall compensation.
• Tax liabilities associated with vesting RSUs can create a financial burden for the CEO.

Future Outlook

646,726 RSUs will vest in three equal annual installments beginning on March 1, 2025.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the trading activities of company insiders. This filing indicates the CEO's ongoing stake in the company's performance.

Comparison to Industry Standards

• Executive compensation packages often include a mix of salary, bonus, and equity-based awards like RSUs.
• Vesting schedules for RSUs are typically structured to incentivize long-term performance and retention.
• Tax withholding practices related to equity awards are standard across publicly traded companies.
• Comparable companies such as Warner Bros. Discovery and Netflix also utilize RSUs as part of their executive compensation plans.

Stakeholder Impact

• Shareholders may view the CEO's equity ownership as a positive sign of alignment with their interests.
• Employees may be affected by the company's performance, which is tied to the value of the CEO's equity holdings.

Next Steps

• The newly granted RSUs will vest in three equal annual installments beginning on March 1, 2025.
• The CEO will continue to report any changes in beneficial ownership as required by SEC regulations.

Key Dates