Form 4: Simply Good Foods Co. Director James M. Kilts Acquires Shares as Part of Compensation Program

Director James M. Kilts acquired 3,827 shares of Simply Good Foods Co. common stock on September 6, 2024, as part of the company's annual director compensation program.

Summary

• On September 6, 2024, James M. Kilts, a director of Simply Good Foods Co., acquired 3,827 shares of common stock.
• The acquisition was part of the issuer's annual director compensation program.
• These shares were granted as restricted stock units (RSUs), each representing the right to receive one share of the company's common stock.
• The RSUs vest on the first anniversary of the grant date.
• Following the transaction, Kilts beneficially owns 84,632 shares of Simply Good Foods Co.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed positively as it aligns management interests with shareholders. There are no indications of negative sentiment.

Positives

• The acquisition of shares by a director demonstrates confidence in the company's future.
• The use of RSUs as part of the compensation program aligns the director's interests with those of the shareholders.

Future Outlook

The RSUs vest on the first anniversary of the grant date, indicating a future event related to the shares.

Industry Context

Director compensation in the form of stock and restricted stock units is a common practice in publicly traded companies to align management's interests with those of shareholders.

Comparison to Industry Standards

• Granting restricted stock units (RSUs) to directors is a common practice among publicly traded companies, including those in the consumer packaged goods sector like Simply Good Foods Co.
• Companies such as Mondelez International and Hershey Co. also utilize equity-based compensation for their directors to align their interests with shareholder value.
• The vesting period of one year for the RSUs is fairly standard, as it encourages directors to remain engaged and focused on long-term growth.

Stakeholder Impact

• The acquisition of shares by a director can positively influence shareholder confidence.
• The director's compensation structure aligns their interests with the long-term success of the company, benefiting shareholders.

Key Dates