Form 4: Sysco EVP and CFO Kenny K. Cheung Reports Acquisition of Stock Options and Restricted Stock Units

Kenny K. Cheung, EVP and CFO of Sysco Corp, reports the acquisition of stock options and restricted stock units on August 21, 2024.

Summary

• On August 21, 2024, Kenny K. Cheung, the EVP and CFO of Sysco Corp, acquired 12,305 shares of common stock in the form of restricted stock units.
• These restricted stock units were granted by the Compensation and Leadership Development Committee of the Company's Board of Directors pursuant to the 2018 Omnibus Incentive Plan.
• One-third of the restricted stock units will vest in equal installments on August 21, 2025, August 21, 2026, and August 21, 2027, respectively.
• Cheung also acquired 32,404 stock options (right to buy) at an exercise price of $74.64.
• One-third of the shares covered by the grant vest and are exercisable on 8/21/2025, 8/21/2026 and 8/21/2027, respectively.
• No options may be exercised prior to 8/21/2025 and options will expire on 8/20/2034.
• Following these transactions, Cheung directly owns 27,766 shares of Sysco common stock and 32,404 stock options.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The acquisition of stock options and restricted stock units by a key executive generally indicates confidence in the company's future, but it's a routine transaction.

Positives

• The acquisition of restricted stock units and stock options by the CFO signals confidence in the company's future performance.

Future Outlook

The vesting schedule of the restricted stock units and stock options suggests a long-term commitment by the CFO to the company's success.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. These filings are closely watched by investors seeking insights into management's perspective on the company's stock.

Comparison to Industry Standards

• Stock option and restricted stock unit grants are a common form of executive compensation in publicly traded companies like Sysco.
• Companies such as United Natural Foods (UNFI) and Performance Food Group (PFGC), which are competitors of Sysco, also utilize similar equity-based compensation plans to incentivize their executives.
• The vesting schedules and exercise prices are generally structured to align executive interests with long-term shareholder value creation, which is a standard practice across the industry.

Stakeholder Impact

• The acquisition of stock options and restricted stock units by the CFO aligns his interests with those of the shareholders, potentially leading to decisions that benefit the company's long-term performance.

Key Dates