Form 4: RE/MAX Holdings Executive William Grady Ligon Reports Stock Grants and Tax Withholding

William Grady Ligon, Chief Information Officer of RE/MAX Holdings, reported the acquisition of performance-based and time-based restricted stock units (RSUs) and the withholding of shares for tax obligations.

Summary

• On March 1, 2024, William Grady Ligon, the Chief Information Officer of RE/MAX Holdings, Inc., was granted 52,500 performance-based restricted stock units (RSUs) under the 2023 Omnibus Incentive Plan.
• These RSUs will vest, if at all, following a performance period from January 1, 2024, through December 31, 2026, with the actual number vesting ranging from 0-200% of the target amount.
• Additionally, Ligon received 35,000 time-based RSUs, which vest in three equal annual installments starting March 1, 2025.
• The report also indicates that 2,257 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, 2024.
• Following these transactions, Ligon directly owns 139,828 shares of Class A Common Stock, which includes 126,463 unvested RSUs.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, suggesting a stable and incentivized management structure. The sentiment is neutral to positive as it indicates alignment of management interests with company performance.

Positives

• The grant of RSUs aligns the executive's interests with the company's performance and long-term growth.
• Time-based vesting encourages continued service and commitment from the executive.
• The use of an omnibus incentive plan suggests a structured approach to employee compensation and motivation.

Risks

• The performance-based RSUs are subject to the achievement of specific performance targets, which may not be met.
• The value of the RSUs is tied to the performance of RE/MAX Holdings' stock, which can fluctuate.
• Tax liabilities associated with RSU vesting can impact the executive's overall compensation.

Future Outlook

The vesting of the RSUs is contingent upon continued service and, for the performance-based RSUs, the achievement of specific performance targets over the period from January 1, 2024, to December 31, 2026.

Industry Context

Stock grants are a common practice in the real estate industry to incentivize and retain key executives. These grants align executive compensation with company performance and shareholder value.

Stakeholder Impact

• Shareholders: The RSU grants align executive interests with shareholder value.
• Employees: The grants may serve as a positive signal regarding the company's commitment to its leadership.
• Executives: The grants provide an incentive for continued service and performance.

Next Steps

• Monitor the performance of RE/MAX Holdings to assess the potential vesting of the performance-based RSUs.
• Track the vesting schedule of the time-based RSUs.

Key Dates