Form 4: Hillary Smith, QuinStreet Director, Acquires Options in Lieu of Cash Compensation

Hillary Smith, a director at QuinStreet, Inc., acquired 1,752 non-qualified stock options in lieu of cash compensation for her board service.

Summary

• Hillary Smith, a director of QuinStreet, Inc., acquired 1,752 non-qualified stock options on May 14, 2024.
• The options were granted in lieu of cash compensation for her service as a board member and Compensation Committee member for the quarter ended March 31, 2024.
• The exercise price of the options is $17.62.
• The options are fully vested and exercisable as of May 14, 2024, and expire on May 14, 2031.
• The number of options was determined by dividing the cash compensation otherwise payable by the Black-Scholes value of a single option.

Sentiment

Score: 7

Explanation: The document reflects a standard transaction of a director receiving stock options, which is generally viewed neutrally to positively as it aligns interests with shareholders. There are no indications of negative sentiment.

Positives

• The director's decision to take options in lieu of cash demonstrates confidence in the company's future performance.
• The options are fully vested immediately, aligning the director's interests with those of shareholders.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

Management Comments

• Ms. Smith elected to receive options in lieu of cash compensation as consideration for her service as a member of QuinStreet, Inc.'s board of directors and a member of the Company's Compensation Committee for the quarter ended March 31, 2024.

Industry Context

Directors receiving stock options as part of their compensation is a common practice in publicly traded companies to align their interests with shareholders and incentivize long-term value creation.

Comparison to Industry Standards

• Granting stock options to board members is a common practice among publicly traded companies, including those in the technology and marketing sectors, such as Trade Desk and Magnite.
• The specific terms of the option grants, such as vesting schedules and exercise prices, vary based on company size, performance, and industry norms.
• The Black-Scholes model is a widely used method for valuing stock options, ensuring fair compensation for board members.

Stakeholder Impact

• The transaction could have a slightly positive impact on shareholders as it aligns the director's interests with the company's long-term success.

Key Dates