Form 4: Shoe Carnival CEO Mark Worden Receives Restricted Stock Units

Mark Worden, CEO of Shoe Carnival, was granted 34,175 restricted stock units, which will vest in two tranches in 2026 and 2027.

Summary

• On March 13, 2024, Mark J. Worden, the President and CEO of Shoe Carnival Inc. (SCVL), acquired 34,175 shares of common stock in the form of restricted stock units.
• These restricted stock units represent a contingent right to receive an equivalent number of shares of Shoe Carnival common stock.
• One-half of the restricted stock units will vest on March 31, 2026, and the remaining one-half will vest on March 31, 2027, contingent upon Worden's continuous service with the company through those dates.
• Following this transaction, Worden directly owns 205,148 shares of Shoe Carnival common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The granting of restricted stock units is a standard practice and indicates confidence in the company's future performance. It aligns management's interests with shareholders.

Positives

• The grant of restricted stock units aligns the CEO's interests with those of the shareholders, incentivizing him to improve the company's performance over the long term.
• The vesting schedule encourages continued service and commitment from the CEO.

Risks

• The value of the restricted stock units is dependent on the future performance of Shoe Carnival's stock price.
• If Worden leaves the company before the vesting dates, he will forfeit the unvested restricted stock units.

Future Outlook

The restricted stock units will vest in the future if the reporting person continues to work at the company.

Industry Context

Grants of restricted stock units are a common form of executive compensation in the retail industry, aligning management's interests with shareholder value.

Comparison to Industry Standards

• Executive compensation packages, including restricted stock units, are common in publicly traded companies like Shoe Carnival.
• Comparable companies such as Foot Locker (FL) and DSW (DSW) also utilize equity-based compensation to incentivize their executives.
• The vesting schedules and amounts of restricted stock units are typically benchmarked against industry peers to ensure competitiveness.

Stakeholder Impact

• Shareholders may view the grant of restricted stock units positively, as it aligns management's interests with the company's long-term success.
• Employees may be motivated by the fact that the CEO's compensation is tied to the company's performance.

Key Dates