Form 4: SEI Investments CEO Ryan Hicke Boosts Equity Holdings

SEI Investments CEO Ryan Hicke reported the acquisition of restricted stock units and stock options as part of his employment compensation.

Summary

• Ryan Hicke, CEO and Director of SEI Investments Co (SEIC), acquired 25,904 shares of common stock in the form of Restricted Stock Units (RSUs) on December 12, 2025. These RSUs are subject to vesting.
• He also acquired 288,333 options to purchase common stock with an exercise price of $83 on December 12, 2025.
• These options will vest on the later of December 12, 2027, or when SEI Investments achieves an adjusted earnings per share 25% greater than its adjusted EPS as of December 31, 2025.
• Following these transactions, Hicke directly beneficially owns 197,163.77 shares of common stock and 288,333 derivative options.
• He indirectly beneficially owns 14,726.098 shares of common stock through a 401(k) Plan.
• All acquired securities were received as employment compensation.

Sentiment

Score: 7

Explanation: The filing reports a significant equity grant to the CEO, aligning his interests with long-term shareholder value through performance-based incentives. This is generally viewed positively as it motivates management to drive company growth and profitability.

Positives

• CEO Ryan Hicke received a significant grant of 25,904 Restricted Stock Units and 288,333 stock options, aligning his interests with long-term shareholder value.
• The performance-based vesting condition for the stock options, requiring a 25% increase in adjusted EPS over the December 31, 2025 baseline, incentivizes strong financial performance.
• The acquisition of equity as employment compensation demonstrates continued commitment from top management.

Risks

• The vesting of 288,333 stock options is contingent on achieving a 25% increase in adjusted earnings per share over the December 31, 2025 baseline, which introduces a performance risk for the executive if targets are not met.
• The value of the acquired restricted stock units and stock options is subject to market fluctuations of SEI Investments Co common stock.

Future Outlook

The vesting of 288,333 stock options is tied to future company performance, specifically achieving an adjusted earnings per share that is 25% greater than the adjusted EPS as of December 31, 2025. This indicates a forward-looking incentive structure for the CEO.

Industry Context

This filing reflects a standard practice in executive compensation within the financial services industry, where equity grants like RSUs and stock options are used to align executive incentives with long-term shareholder value and company performance. The performance-based vesting condition is a common mechanism to link compensation directly to financial results.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) and performance-based stock options is a common practice for executive compensation in the financial services sector, similar to compensation structures seen at companies like BlackRock, Vanguard, or Fidelity.
• The performance hurdle of a 25% increase in adjusted EPS is a significant but not uncommon target for long-term incentive plans designed to drive substantial growth.
• The option exercise price of $83 would be compared to the market price of SEIC stock on the grant date to assess if it was granted at-the-money, in-the-money, or out-of-the-money, which is standard practice.

Corporate Governance

Related Party Transactions

• The transactions involve the grant of equity compensation from SEI Investments Co to its Chief Executive Officer, Ryan Hicke, which are considered related party dealings.

Stakeholder Impact

• Shareholders: The equity grants, particularly the performance-based options, are designed to incentivize the CEO to enhance shareholder value through increased earnings per share.
• Employees: While not directly impacting all employees, the CEO's compensation structure can set a precedent or reflect the company's overall approach to performance incentives.

Next Steps

• The company will need to achieve an adjusted earnings per share 25% greater than its December 31, 2025 baseline for the 288,333 stock options to vest.
• The 25,904 Restricted Stock Units are subject to future vesting conditions not fully detailed in this filing.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation in the form of equity grants. While the grants align the CEO's interests with shareholders and include performance-based vesting, they do not provide new fundamental information about the company's operational performance or strategic direction that would warrant a change in investment recommendation. It's a positive signal for management alignment but not a catalyst for a strong buy or sell. Therefore, a "hold" recommendation is appropriate, maintaining current positions while awaiting more comprehensive financial or strategic updates.

Keywords

SEI Investments, SEIC, Ryan Hicke, Form 4, Insider Trading, Stock Options, Restricted Stock Units, CEO Compensation, Equity Grant, Executive Compensation