Form 4: SEI Investments Officer Granted Future Equity Awards

Sanjay Sharma, an officer at SEI Investments Co., was granted restricted stock units and stock options scheduled for December 2025 as employment compensation.

Summary

• Sanjay Sharma, an officer of SEI Investments Co. (SEIC), was granted a total of 15,934 restricted stock units (RSUs) and 47,000 stock options.
• These grants are scheduled to occur on December 12, 2025, and are part of his employment compensation.
• The RSUs consist of two tranches: 8,434 units and 7,500 units, both subject to vesting.
• The stock options have an exercise price of $83 and expire on December 12, 2035.
• The options will vest on the later of December 12, 2027, or when SEI Investments Co. achieves adjusted earnings per share 25% greater than its adjusted EPS as of December 31, 2025.
• The transactions were made pursuant to a Rule 10b5-1(c) plan.
• Following these transactions, Sanjay Sharma will beneficially own 39,828.992 shares of common stock directly and 47,000 derivative securities (options). He also holds 2,369.2012 shares indirectly through an Employee Stock Purchase Plan.

Sentiment

Score: 7

Explanation: The filing reports significant equity grants to an officer, including performance-based options, which is generally positive for aligning management incentives with shareholder value. The future dating of the transactions and filing is unusual but doesn't inherently indicate negative sentiment.

Positives

• Grant of 15,934 Restricted Stock Units (RSUs) to an officer, aligning management's interests with shareholder value.
• Grant of 47,000 stock options with an exercise price of $83, providing an incentive for future stock price appreciation.
• The vesting conditions for the options include a performance-based metric (25% increase in adjusted EPS by December 31, 2025), promoting strong financial performance.

Future Outlook

The vesting condition for the stock options ties to achieving adjusted earnings per share that is 25% greater than the Issuer's adjusted EPS as of December 31, 2025, indicating a forward-looking performance target for the company.

Industry Context

Equity grants to officers are a standard practice in the financial services industry to attract, retain, and incentivize key talent, aligning their performance with the company's long-term success and shareholder interests.

Comparison to Industry Standards

• The use of performance-based vesting for stock options, tied to adjusted EPS growth, aligns with best practices in executive compensation seen in companies like BlackRock or Vanguard, which often link long-term incentives to specific financial or operational targets.
• The grant of Restricted Stock Units (RSUs) is a common form of equity compensation across the financial sector, similar to programs at firms such as Fidelity or Charles Schwab, providing retention incentives and direct equity ownership.
• The establishment of a Rule 10b5-1 plan for these transactions is a standard compliance measure for insiders to trade company stock without being accused of insider trading, a practice widely adopted by executives at public companies.

Related Party Transactions

• The grants of Restricted Stock Units and stock options to Sanjay Sharma, an officer of SEI Investments Co., constitute related party transactions as they involve compensation from the company to a key executive.

Stakeholder Impact

• Shareholders: Potential positive impact due to increased alignment of management's interests with long-term stock performance and the incentive for achieving higher EPS.
• Employees: May signal a commitment to retaining key talent and a performance-driven culture within the company.

Next Steps

• Vesting of 15,934 Restricted Stock Units (RSUs) will occur after December 12, 2025.
• Vesting of 47,000 stock options will occur on the later of December 12, 2027, or when SEI Investments Co. achieves adjusted earnings per share 25% greater than its adjusted EPS as of December 31, 2025.

Key Dates

Recommendation

This Form 4 reports scheduled equity grants to an officer, which is a routine compensation event and generally viewed as a positive for aligning management incentives. However, it does not provide new fundamental information about the company's financial performance or strategic direction that would warrant a change in investment recommendation. The future dating of the transaction and filing is unusual but doesn't inherently change the fundamental outlook. Investors should hold and monitor the company's broader financial reports for more comprehensive insights.

Keywords

SEI Investments, SEIC, Sanjay Sharma, Form 4, Insider Trading, Restricted Stock Units, Stock Options, Equity Compensation, Rule 10b5-1, Corporate Governance