Form 4: Red Robin Gourmet Burgers Inc. Executive Stock Transaction

Red Robin's Chief Legal Officer, Sarah A. Mussetter, had shares withheld to cover tax obligations related to vesting restricted stock units.

Summary

• On December 8, 2024, Red Robin Gourmet Burgers Inc. Chief Legal Officer, Sarah A. Mussetter, had 1,824 shares withheld to cover tax obligations.
• This withholding was related to the vesting of 6,345 time-based restricted stock units granted on December 8, 2022, under the company's 2017 Performance Incentive Plan.
• The transaction was approved by the issuer's Compensation Committee and is exempt from Section 16(b) of the Exchange Act.
• Mussetter also holds 46,082 time-based restricted stock units subject to vesting and forfeiture restrictions.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to executive compensation, which is neither particularly positive nor negative. It is a standard practice and does not indicate any significant issues.

Positives

• The transaction was approved by the Compensation Committee, indicating proper governance.
• The transaction is exempt from Section 16(b) of the Exchange Act, suggesting compliance with regulations.

Industry Context

This type of transaction is common for publicly traded companies as part of executive compensation packages. It reflects standard practice for managing stock-based compensation and tax obligations.

Comparison to Industry Standards

• The vesting of restricted stock units and subsequent tax withholding is a standard practice across publicly traded companies.
• Many companies, such as McDonald's (MCD) and Wendy's (WEN), use similar stock-based compensation plans for their executives.
• The exemption from Section 16(b) of the Exchange Act is also a common occurrence for these types of transactions, as long as they are approved by the compensation committee.

Stakeholder Impact

• The transaction has a minor impact on shareholders as it involves a small number of shares being withheld for tax purposes.
• The transaction is part of the executive compensation package, which is a standard practice.

Key Dates

Keywords

restricted stock units, stock vesting, tax withholding, compensation committee, insider transaction, Red Robin, RRGB