Form 4: RH Executive Eri Chaya Awarded 1,000 Stock Options

RH President and Co-Chief Creative Officer Eri Chaya received a grant of 1,000 stock options with a seven-year vesting schedule and an exercise price of $113.46.

Summary

• Eri Chaya, serving as President, Co-Chief Creative and Merchandising Officer, and Director, was granted 1,000 stock options on April 5, 2026.
• The options carry an exercise price of $113.46 per share.
• The grant follows a long-term vesting schedule where 1/7th of the shares vest annually over seven years.
• Full vesting of this specific grant is expected by April 5, 2033, provided continuous service to the company.
• A Power of Attorney was also formally documented, authorizing specific individuals to handle SEC filings on Chaya's behalf.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive administrative action that reinforces executive alignment with long-term shareholders through an extended vesting period.

Positives

• The seven-year vesting period is exceptionally long, signaling a strong commitment to long-term executive retention.
• The exercise price of $113.46 aligns management's financial incentives with future share price appreciation.
• The reporting person maintains multiple high-level leadership roles, suggesting stability in the creative and merchandising departments.

Negatives

• The grant size of 1,000 shares is relatively small compared to typical executive compensation packages for a company of RH's scale.
• The options have no immediate value as they are granted at the current market-related exercise price and require years of service to vest.

Risks

• The options will expire on April 4, 2036, rendering them worthless if the stock price does not exceed $113.46 by that date.
• Unvested portions of the grant are subject to forfeiture if the executive's service to the company is terminated.

Future Outlook

The grant indicates a long-term operational horizon for the executive team, with vesting extending through 2033, suggesting that leadership is focused on multi-year strategic growth rather than short-term gains.

Management Comments

• Eri Chaya serves as President, Co-Chief Creative and Merchandising Officer, and Director.
• Jill Falor acted as Attorney-in-Fact for the filing.

Industry Context

StockSavvy.ai notes that RH's use of a seven-year vesting period is significantly more conservative than the three-to-four-year industry standard seen at competitors like Williams-Sonoma or Ethan Allen, emphasizing a unique corporate culture focused on extreme long-termism.

Comparison to Industry Standards

• RH's 7-year vesting schedule is nearly double the 3-4 year average for S&P 500 retail executives.
• The grant size is smaller than typical annual equity awards for C-suite officers at similar luxury retail brands, which often range in the thousands of shares.

Corporate Governance

Stakeholder Impact

• Shareholders may benefit from the long-term retention of a key creative executive.
• The executive receives potential future equity upside tied to company performance.

Next Steps

• The first tranche of 142 or 143 shares is expected to vest on April 5, 2027.
• The executive will continue to file Form 4s for any subsequent acquisitions or disposals of RH securities.

Key Dates

Keywords

RH, Eri Chaya, Stock Options, Executive Compensation, Insider Trading, Form 4, Vesting Schedule, Retail Leadership