Form 4: Under Armour Director El-Erian Receives RSU Grant

Under Armour Director Mohamed El-Erian was granted 30,674.85 Class C Common Stock units as part of his annual compensation plan.

Summary

• Mohamed El-Erian, a Director of Under Armour, Inc. (UA), received an annual restricted stock unit (RSU) grant.
• The grant, effective September 3, 2025, consisted of 30,674.85 shares of Class C Common Stock.
• The acquisition price for these units was $0, consistent with an RSU grant.
• Following this transaction, El-Erian beneficially owns 203,132.78 shares of Class C Common Stock and 111,650 shares of Class A Common Stock.
• The grant is part of the Under Armour, Inc. Fiscal Year 2025 Non-Employee Director Compensation Plan.

Sentiment

Score: 6

Explanation: The filing reports a routine restricted stock unit grant to a director as part of their compensation plan. This is a neutral to slightly positive event, as it aligns the director's interests with shareholders, but does not indicate any significant operational or financial news.

Positives

• The grant of restricted stock units aligns the director's interests with long-term shareholder value.
• It represents a standard component of non-employee director compensation, indicating continuity in governance practices.

Negatives

• No specific negative points are identified in this routine compensation filing.

Risks

• No specific risks are mentioned in this Form 4 filing.

Future Outlook

No forward-looking statements or guidance are provided in this Form 4 filing.

Industry Context

The grant of restricted stock units to non-employee directors is a common practice across publicly traded companies, particularly in the consumer discretionary sector where Under Armour operates. This method of compensation is widely used to align director incentives with long-term company performance and shareholder interests, reflecting standard corporate governance practices.

Comparison to Industry Standards

• The use of restricted stock units (RSUs) as a component of non-employee director compensation is a widely adopted practice among S&P 500 companies and peers in the apparel and footwear industry, such as Nike (NKE) and Lululemon (LULU).
• This approach is considered a best practice for aligning director incentives with long-term shareholder value, as the value of the compensation is tied directly to the company's stock performance.
• The specific number of units granted would typically be benchmarked against peer group compensation data to ensure competitiveness and appropriateness for a company of Under Armour's size and market capitalization.

Corporate Governance

Related Party Transactions

• The restricted stock unit grant to Mohamed El-Erian, a director, constitutes a related party transaction as it involves compensation from the company to an insider.

Stakeholder Impact

• Shareholders: The grant aligns the director's interests with long-term shareholder value.
• Employees: No direct impact on employees is indicated.
• Customers: No direct impact on customers is indicated.
• Suppliers: No direct impact on suppliers is indicated.
• Creditors: No direct impact on creditors is indicated.

Key Dates

Keywords

Under Armour, UA, Mohamed El-Erian, Director Compensation, Restricted Stock Units, RSU Grant, SEC Form 4, Insider Transaction, Class C Common Stock, Corporate Governance