Form 4: RGP Director Neil F. Dimick Reports Acquisition of Phantom Stock Due to Dividend Equivalent

Director Neil F. Dimick reports acquiring 550 phantom shares of Resources Connection, Inc. due to dividend equivalents accrued under the Directors Deferred Compensation Plan.

Summary

• On March 14, 2024, Neil F. Dimick, a director of Resources Connection, Inc. (RGP), acquired 550 phantom shares of common stock.
• This acquisition is due to dividend equivalent phantom shares accrued on previously awarded phantom shares, as per the Directors Deferred Compensation Plan.
• Each phantom share is economically equivalent to one share of common stock and will be payable in cash upon separation from service as a director.
• Following this transaction, Dimick directly owns 51,754 phantom shares.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation. It's neutral in tone and doesn't indicate any significant positive or negative developments for the company.

Future Outlook

The phantom shares will be payable in cash to the reporting person upon separation from service as a director in accordance with the reporting person's election under the Directors Deferred Compensation Plan.

Industry Context

This filing is a routine disclosure related to director compensation and is typical for companies with deferred compensation plans. It reflects standard practices for aligning director interests with shareholder value through equity-based compensation.

Comparison to Industry Standards

• Deferred compensation plans for directors are common across publicly traded companies, particularly in professional services firms like Resources Connection, Inc.
• Companies like Accenture and Deloitte also utilize similar compensation structures to attract and retain qualified board members.
• The use of phantom stock to mirror dividend payments is a standard feature in these plans, ensuring directors receive equivalent benefits to common shareholders.

Stakeholder Impact

• The transaction has a minimal direct impact on shareholders, as it relates to director compensation and does not involve the issuance of new shares.
• Employees are indirectly affected as director compensation aligns leadership interests with company performance.

Key Dates