Form 4: Perdoceo SVP Leeman Granted Equity Awards

Perdoceo Education Corp's SVP of Campus Operations, Julia A. Leeman, was granted 4,420 restricted stock units on March 10, 2026.

Summary

• Julia A. Leeman, SVP Campus Operations of Perdoceo Education Corp [PRDO], was granted 2,652 time-based restricted stock units (RSUs) on March 10, 2026.
• These time-based RSUs vest in four equal installments on March 14, 2027, 2028, 2029, and 2030.
• An additional 1,768 performance-based restricted stock units were granted on March 10, 2026, representing the target number of shares.
• The performance-based RSUs vest on March 14, 2029, with the actual number of shares issued ranging from 0-200% of target based on achievement of certain operating criteria.
• Following these transactions, Julia A. Leeman beneficially owns 34,097 shares of common stock, which includes 22,782 unvested restricted stock units.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive signal, indicating continued alignment of executive incentives with long-term shareholder value, though it's a routine compensation event and not indicative of operational performance.

Positives

• The grant of restricted stock units aligns the executive's long-term interests with those of shareholders, incentivizing performance.
• The equity awards are granted at a price of $0, indicating they are part of a compensation package designed to reward future performance and retention.

Negatives

• The performance-based RSUs carry a risk of zero payout if operating criteria are not met, introducing variability in compensation.
• The awards are unvested, meaning the executive does not immediately realize the full value of the grant.

Risks

• The actual number of shares issued for performance-based RSUs can range from 0-200% of the target based on the level of achievement of certain operating criteria, introducing uncertainty in the final compensation value.
• The value of the granted common stock is subject to market fluctuations, which could impact the ultimate value realized by the reporting person upon vesting.

Future Outlook

The future outlook for Julia A. Leeman's compensation is tied to the company's performance and her continued employment, with time-based RSUs vesting annually through March 2030 and performance-based RSUs vesting in March 2029, contingent on achieving specific operating criteria.

Industry Context

StockSavvy.ai notes that equity grants, particularly restricted stock units with both time-based and performance-based components, are a standard practice in executive compensation across various industries, including education. This structure aims to align the interests of senior management with long-term shareholder value creation and incentivize the achievement of strategic operational goals. The use of a Power of Attorney for SEC filings is also a common administrative practice for executives.

Comparison to Industry Standards

• The use of restricted stock units (RSUs) as a form of executive compensation is a common practice across publicly traded companies, including those in the education sector, aligning with global benchmarks for incentivizing long-term performance.
• The inclusion of both time-based and performance-based vesting conditions is a standard approach to balance retention incentives with performance-driven rewards, comparable to compensation structures at peers like Adtalem Global Education (ATGE) or Strategic Education, Inc. (STRA).

Corporate Governance

Stakeholder Impact

• Shareholders: The equity grant aligns management's financial interests with shareholder value creation, potentially leading to better long-term performance.
• Employees: The compensation structure for senior leadership can set a precedent or reflect the company's overall approach to performance-based incentives.

Next Steps

• Vesting of 2,652 time-based restricted stock units in four equal installments on March 14, 2027, 2028, 2029, and 2030.
• Vesting of 1,768 performance-based restricted stock units (target) on March 14, 2029, with the actual number of shares dependent on operating criteria achievement.

Key Dates

Recommendation

The filing details a routine equity grant to an executive, which is a standard compensation practice. It does not contain information that would fundamentally alter the investment thesis for Perdoceo Education Corporation, thus a 'hold' recommendation is appropriate based solely on this document.

Keywords

Perdoceo Education, PRDO, SEC Form 4, Insider Transaction, Restricted Stock Units, RSU Grant, Executive Compensation, Equity Award, Corporate Governance