Transforming Stock Vesting Dates into Actionable Insights
In fundraising . . . timing is everything. Although no one can predict life events, KALEIDOSCOPE has developed AI-driven technology, to help surface critical and somewhat elusive stock vesting dates in SEC filings. to “translate” convoluted text-based formulas disclosed in Form 4s . . .
As fundraisers, we’re often looking for solutions to identify more opportunities within our current donor list and prospects. And those opportunities are not always immediately obvious.
Other than accumulated wealth from past stock sales, cash compensation, or corporate matching gift programs, most corporate insiders have stock awards that are either time-base or performance based, or some combination of both criteria, as part of their overall compensation package.
Insider Forms 3, 4, and 5 tell the story of the trail of awards and wealth events. However, the key to understanding what is being disclosed (a sale, exercise of an option, or vesting of an award) is found in the section at the bottom – Explanation of Responses. Each of the (#) correlates to the (1) footnotes indicated in Tables I and Table II.
Making “heads or tails” out of the convoluted “legalese” in Form 4 footnotes, can take hours! Especially, if the insider has lots of Restricted Stock Units (RSUs) that typically vest over 3-5 years. when does vesting start exactly? And how many shares does that percentage of shares represent? iI don’t know about you but, figuring this out hurts my brain to figure out elusive language filled with percentages and timelines!
To eliminate this painful process, KALEIDOSCOPE has identified the Insiders who have stock that will be vesting in the future to provide prospect research and management teams with an instant filter to surface wealth events, giving development officers time to cultivate prospects or known donors. The image to the right displays the filter.
In the left search column of INSIDER FOCUS, you will find the MISC Filter in the INDIVIDUAL search criteria section. Use this simple check box to instantly create a list of Insiders with shares that are vesting in the near term! This is a huge time saver.
On the Results Page, you will see a calendar icon under the Insider’s name. A Visual Flag – Click the Calendar Icon to view the table showing translation of the footnotes to plain English.
- Table displays number of shares and vesting date
- Translates footnotes into plain English with a verification link to the source filing.
