Form 4: Take-Two Interactive Director Roland Hernandez Receives Restricted Stock Grant

Roland A. Hernandez, a Director at Take-Two Interactive Software Inc. (TTWO), has been granted 262 shares of restricted common stock as part of the company's director compensation program.

Summary

• Roland A. Hernandez, a Director of Take-Two Interactive Software Inc. (TTWO), acquired 262 shares of common stock.
• The acquisition was a grant of restricted common stock under the company's Director compensation program and the 2017 Stock Incentive Plan.
• The grant date was May 28, 2025, and the shares were acquired at a price of $0, as is typical for stock grants.
• Following this transaction, Mr. Hernandez beneficially owns a total of 9,506 shares of common stock.
• The restricted shares are set to vest on the first anniversary of the Pricing Date, which was May 28, 2025.

Sentiment

Score: 7

Explanation: The document reports a routine equity grant to a director, which is a positive sign for corporate governance as it aligns management interests with shareholders. It does not contain any negative or unexpected information, nor does it suggest significant market-moving news.

Positives

• The grant of restricted stock to a director aligns their interests with those of the shareholders, promoting long-term value creation.
• This is a standard component of director compensation, indicating stable corporate governance practices.

Future Outlook

The 262 shares of restricted common stock granted to Director Roland A. Hernandez are scheduled to vest on the first anniversary of the grant date, May 28, 2025, meaning they will vest on May 28, 2026.

Industry Context

The practice of compensating directors with equity, such as restricted stock, is a common and widely accepted practice across various industries, including the interactive entertainment sector. It serves to align the interests of the board members with the long-term performance of the company and its shareholders.

Comparison to Industry Standards

• The grant of restricted stock as part of director compensation is a standard practice observed across major public companies, including peers in the gaming industry like Electronic Arts (EA) and Activision Blizzard (ATVI) before its acquisition by Microsoft.
• The structure, involving a grant under a pre-existing stock incentive plan and a director compensation program, is consistent with typical corporate governance frameworks for non-employee directors.
• The vesting schedule (one year) is also a common approach to ensure continued commitment and alignment over a reasonable period.

Corporate Governance

Related Party Transactions

• The acquisition of shares by Roland A. Hernandez, a Director, constitutes a related party transaction, specifically a compensation award under the company's established programs.

Stakeholder Impact

• Shareholders: The grant aligns the director's financial interests with the long-term performance of the company, potentially leading to more shareholder-friendly decisions.
• Employees: No direct impact mentioned, but it reinforces the company's commitment to equity-based compensation for key personnel.

Next Steps

• The restricted shares granted to Roland A. Hernandez are expected to vest on May 28, 2026 (the first anniversary of the Pricing Date).

Key Dates

Recommendation

Keywords

Take-Two Interactive Software, TTWO, SEC Form 4, Restricted Stock Grant, Director Compensation, Insider Transaction, Equity Award, Corporate Governance