Form 4: Victory Capital Holdings Director Alan Rappaport Acquires Shares in Lieu of Fees

Director Alan Rappaport acquired 916 shares of Victory Capital Holdings, Inc. (VCTR) common stock on October 10, 2024, in lieu of director fees.

Summary

• On October 10, 2024, Alan Rappaport, a director of Victory Capital Holdings, Inc., acquired 916 shares of common stock.
• The shares were issued in lieu of quarterly director fees totaling $25,000, fees for service as the chairperson of the Company's Compensation Committee totaling $3,750, and fees for service as a member of the Company's Audit Committee totaling $2,500.
• The price per share was $57.3, based on the closing price of the company's shares on October 10, 2024.
• Following the transaction, Mr. Rappaport directly owns 150,064 shares of common stock and indirectly owns 298,861 shares through ADR Partners.
• Mr. Rappaport disclaims beneficial ownership of the shares held by ADR Partners except to the extent of his pecuniary interest therein.

Sentiment

Score: 6

Explanation: The sentiment is neutral. A director taking shares in lieu of fees can be seen as a positive sign of alignment with shareholders, but it's a routine transaction.

Positives

• The director's decision to take shares in lieu of cash may signal confidence in the company's future performance.

Industry Context

Directors receiving shares in lieu of fees is a common practice, particularly in smaller or growth-oriented companies, as it conserves cash and aligns the director's interests with those of shareholders.

Comparison to Industry Standards

• Comparing Victory Capital's director compensation structure to similar asset management firms like Affiliated Managers Group (AMG) or Janus Henderson (JHG) could provide context on whether this arrangement is typical.
• Reviewing the director compensation policies of companies within the S&P 500 financial sector can offer a benchmark for industry standards.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns director interests with company performance and conserves cash.

Key Dates