(copying here)
I suspect we will see short term actions to try to get short term pops on Kyndryl's stock based on the CEOs (and the rest of the C-suite's) Restricted Stock Units vesting dates.
When does a Long Term Incentive Plan become a Short Term Incentive Plan?
According to Kyndryl's own Form 4 provided to the SEC last week, Martin Schroeter's 577,640 RSUs ALL vest within the next 2 years. That's pretty short by any standard objective for a CEO. But it gets worse.
Of those 577,680 RSUs, Mr. Schroeter has 300,885 RSUs that vest in the next 7 months! Over 52% of his RSUs are very short term.
The CEO then has 425,767 RSUs that vest in the next 12 months - that is 73% in the next year. Remember, IBM has held on to 20% of its Kyndryl shares and has said they plan on selling in the first 12 months. IBM did hire him. IBM appears to have hedged their bet here.
Furthermore, for those of you who have been watching this, Kyndryl has said their revenue will continue to shrink until 2025, and then they will begin to grow. You would think the leadership would have their own equity lined up with that.
Date Vesting Cumulative Percentage
12/31/21 134,326 134,326 23%
5/3/22 124,882 259,208 45%
6/7/22 26,990 286,198 50%
6/8/22 14,687 300,885 52% <<< More than half vest in 7 months
11/3/22 124,881 425,767 74% <<< 74% vest in the next year
6/7/23 26,990 452,758 78%
11/3/23 124,882 577,640 100% <<< All within 2 years