Form 4: Tanger Inc. Director Steven B. Tanger Reports Share Conversion and Tax Withholding

Director Steven B. Tanger converted notional units into restricted common shares of Tanger Inc. and forfeited shares to cover tax liabilities.

Summary

• On February 26, 2024, Steven B. Tanger, a director of Tanger Inc. (SKT), converted 155,441 notional units into restricted common shares.
• These shares vested on the same date, February 26, 2024, according to the terms of his employment agreement.
• Tanger also forfeited 61,166 common shares to satisfy a tax withholding liability related to the vesting of the stock, at a price of $28.78 per share.
• Following these transactions, Tanger directly owns 920,298 shares of common stock and indirectly owns 5,000 shares through his wife.
• He also indirectly beneficially owns 2,879,797 Limited Partnership Units through Tango 7 LLC, which are exchangeable into shares of Tanger Inc.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The conversion of notional units suggests the company met performance targets, which is a positive signal. The tax withholding is a normal part of equity compensation.

Positives

• The conversion of notional units into common shares indicates that performance targets related to share price appreciation and TSR relative to peers were met.

Negatives

• The forfeiture of 61,166 shares to cover tax liabilities represents a reduction in Tanger's holdings, although it is a standard procedure related to vesting.

Industry Context

Form 4 filings are standard disclosures required by the SEC to provide transparency into the transactions of company insiders, allowing investors to track changes in beneficial ownership.

Comparison to Industry Standards

• Comparing Tanger's performance metrics (TSR and share price appreciation) to its peer group is crucial to understanding the context of the notional unit conversion.
• Similar REITs like Simon Property Group (SPG) and Macerich (MAC) could be considered benchmarks for assessing Tanger's TSR performance.
• The vesting of performance-based equity compensation is a common practice across publicly traded companies to align management's interests with those of shareholders.

Stakeholder Impact

• The conversion of notional units into shares could have a slightly dilutive effect on existing shareholders.
• The vesting of equity compensation aligns management's interests with those of shareholders, potentially driving long-term value creation.

Key Dates