Form 4: Pegasystems Director Rohit Ghai Acquires Shares and Options as Compensation
SEC Form 4 Filing
Director Rohit Ghai received 512 shares of common stock and 1,091 stock options as compensation for his service on the board of Pegasystems.
Summary
- Rohit Ghai, a director at Pegasystems, received 512 shares of common stock as compensation for his service.
- These shares were granted on January 16, 2025, and their value was pro-rated based on his expected service until the next Annual Meeting of Shareholders on June 17, 2025.
- Mr. Ghai also received 1,091 non-statutory stock options that fully vested upon issuance.
- The stock options were also granted as compensation for his service as a director, with their value pro-rated similarly to the shares.
- The exercise price of the stock options is $102.49, and they expire on January 16, 2035.
Sentiment
Score: 7
Explanation: The document reflects a standard compensation practice, which is generally positive for aligning director and shareholder interests. There are no negative implications.
Positives
- The grant of shares and options aligns the director's interests with those of the shareholders.
- The vesting of the options upon issuance provides immediate incentive for the director.
- The pro-rated value of the compensation reflects the director's expected service period.
Industry Context
This is a standard practice for compensating board members in publicly traded companies, aligning their interests with shareholders through equity-based compensation.
Comparison to Industry Standards
- Granting stock options and shares to directors is a common practice among publicly traded companies like Pegasystems.
- Companies such as Salesforce, Oracle, and SAP also use similar compensation methods to incentivize their board members.
- The pro-rating of the compensation based on the service period is a standard approach to ensure fair compensation for the director's contribution.
Stakeholder Impact
- The grant of shares and options to a director aligns their interests with those of shareholders.
- This type of compensation is a standard practice and is not expected to have a significant impact on other stakeholders.
Key Dates
| Date | Description |
|---|---|
| 01/16/2025 | Date of the transaction where Rohit Ghai received shares and stock options. |
| 01/16/2025 | Date the stock options became exercisable. |
| 01/16/2035 | Expiration date of the stock options. |
| 01/21/2025 | Date the Form 4 was signed. |
| 06/17/2025 | Date of the next Annual Meeting of Shareholders, used for pro-rating compensation. |
Keywords
Pegasystems, Director Compensation, Stock Options, Share Grant, Form 4, Rohit Ghai, Executive Compensation
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