Form 4: RE/MAX Holdings CEO Erik Carlson Reports Stock Grants and Tax Withholding

RE/MAX Holdings CEO Erik Carlson reports the grant of performance-based and time-based restricted stock units (RSUs) and shares withheld for tax obligations.

Summary

• On March 1, 2025, RE/MAX Holdings CEO Erik Carlson was granted 255,913 performance-based restricted stock units (RSUs) under the 2023 Omnibus Incentive Plan.
• These RSUs will vest, if at all, after a performance period from January 1, 2025, through December 31, 2027, with the actual number vesting ranging from 0-200% of the target amount.
• On the same date, Carlson also received 255,913 time-based RSUs, which vest in three equal annual installments starting March 1, 2026.
• Additionally, 27,755 shares of Class A common stock were withheld by RE/MAX Holdings to cover tax obligations related to the settlement of RSUs on March 1, 2025.
• Following these transactions, Carlson beneficially owns 1,075,222 shares of Class A common stock, including 931,182 unvested RSUs.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, suggesting a stable and well-managed company. The RSU grants indicate confidence in future performance.

Positives

• The grant of RSUs aligns the CEO's interests with the company's performance and long-term growth.
• Time-based vesting encourages continued service and commitment from the CEO.
• Performance-based vesting incentivizes the achievement of specific performance goals.

Risks

• The actual number of performance-based RSUs that vest is contingent on the company's performance over the next few years, introducing uncertainty.
• The value of the RSUs is subject to the market price of RE/MAX Holdings' Class A common stock, which can fluctuate.

Future Outlook

The vesting of the RSUs is dependent on future performance and continued service, aligning executive compensation with company goals.

Industry Context

Equity compensation is a common practice in the real estate industry to attract and retain top executive talent and align their interests with shareholder value.

Comparison to Industry Standards

• Comparing RE/MAX's executive compensation structure to peers like Realogy (now Anywhere Real Estate) and Compass would provide a benchmark for assessing the competitiveness and appropriateness of the RSU grants.
• Reviewing similar Form 4 filings from executives at these companies can offer insights into industry standards for equity compensation.

Stakeholder Impact

• Shareholders may view the RSU grants positively as they align executive interests with company performance.
• Employees may see the grants as a sign of the company's commitment to its leadership.

Key Dates