Form 4: Stagwell Inc. Director Acquires Shares in Lieu of Cash Compensation

Director Eli Samaha acquired 2,849 shares of Stagwell Inc. Class A Common Stock on October 1, 2024, as part of the company's Non-Employee Director Compensation Policy.

Summary

• On October 1, 2024, Eli Samaha, a director of Stagwell Inc., acquired 2,849 shares of Class A Common Stock.
• This acquisition was in lieu of a $20,000 cash payment for quarterly fees for service on the Issuer's Board of Directors.
• The share price used for the calculation was $7.02.
• Following the transaction, Mr. Samaha directly owns 93,492 shares and indirectly owns 7,147,662 shares through funds managed by Madison Avenue Partners, LP.
• Mr. Samaha disclaims beneficial ownership of the indirectly held shares except to the extent of his pecuniary interest.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. A director taking shares instead of cash is generally a good sign, indicating confidence in the company. The transaction itself is routine and expected.

Positives

• The director's decision to take shares instead of cash demonstrates confidence in the company's future.
• The Non-Employee Director Compensation Policy provides flexibility in compensating board members.

Management Comments

• The reporting person elected to receive payment of quarterly fees for service on the Issuer's Board of Directors in shares of fully vested Class A Common Stock in lieu of a cash payment.

Industry Context

Directors receiving stock compensation is a common practice to align their interests with those of shareholders.

Comparison to Industry Standards

• Stock compensation for board members is a common practice across the advertising and marketing industry, with companies like Omnicom and Interpublic Group also utilizing similar strategies.
• The amount of stock compensation is within the typical range for non-executive directors in comparable companies.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with theirs.
• The impact on employees, customers, suppliers, and creditors is negligible.

Key Dates