Form 4: RE/MAX Holdings Executive Granted Stock Awards, Sells Shares for Tax Obligations

William Grady Ligon, Chief Information Officer of RE/MAX Holdings, received performance-based and time-based restricted stock units (RSUs) and sold shares to cover tax obligations.

Summary

• On March 1, 2025, William Grady Ligon, the Chief Information Officer of RE/MAX Holdings, Inc., was granted performance-based restricted stock units (RSUs) with a target amount of 41,386 shares.
• These performance-based RSUs will vest, if at all, following a performance period from January 1, 2025, through December 31, 2027, with the actual number of shares vesting ranging from 0-200% of the target amount.
• On the same date, Ligon also received time-based RSUs for 41,386 shares, which will vest in three equal annual installments starting on March 1, 2026.
• Ligon also disposed of 5,274 shares of Class A common stock at $8.88 per share to satisfy tax withholding obligations related to the issuance of Class A common stock in settlement of RSUs.
• Following these transactions, Ligon directly owns 226,612 shares of Class A common stock, including 186,924 unvested RSUs.

Sentiment

Score: 6

Explanation: The document is neutral, detailing routine stock transactions. The RSU grants are a positive sign of aligning executive interests, but the tax-related sale is a standard occurrence.

Positives

• The grant of RSUs to the Chief Information Officer aligns his interests with the long-term performance of the company.
• The vesting schedule of the time-based RSUs encourages continued service and commitment to the company.

Risks

• The value of the RSUs is subject to the performance of the company's stock price.
• The performance-based RSUs may not vest fully if the performance targets are not met.

Future Outlook

The vesting of the RSUs is contingent upon continued service and, in the case of performance-based RSUs, the achievement of specific performance targets over the next few years.

Industry Context

Stock awards are a common form of executive compensation in the real estate industry, aligning management's interests with those of shareholders.

Comparison to Industry Standards

• Comparing RE/MAX's executive compensation structure to that of competitors like Realogy (now Anywhere Real Estate) or Compass would provide a better understanding of whether the RSU grants are in line with industry norms.
• Companies like Zillow and Opendoor also use stock-based compensation, and benchmarking against their practices could be informative.
• Analyzing the vesting schedules and performance metrics used by these companies would offer a more comprehensive comparison.

Stakeholder Impact

• The RSU grants could positively impact shareholder value if the executive's performance drives company growth.
• Employees may view the stock awards as a positive sign of the company's commitment to its leadership.

Key Dates