Approximately how many stock awards did Budget grant to non-employee directors in 2022?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant stock awards on an annual basis to non-employee directors representing between 50% and 100% of a director's annual compensation and such awards could be deferred under the Non-employee Directors Deferred Compensation Plan. During 2024, 2023 and 2022, we granted approximately 4,400, 4,000, and 2,500 awards, respectively, to non-employee directors.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, Budget granted approximately 2,500 stock awards to non-employee directors in 2022. These stock awards represent between 50% and 100% of a director's annual compensation and may be deferred under the Non-employee Directors Deferred Compensation Plan.
For a prospective franchisee, this information provides insight into how Budget compensates its non-employee directors. While it doesn't directly impact the franchise operations, it reflects the company's overall financial and compensation strategies. Understanding these strategies can help a franchisee assess the stability and values of the company they are investing in.
It's important to note that the number of stock awards granted can vary from year to year, as evidenced by the different figures for 2023 (4,000 awards) and 2024 (4,400 awards). This variation could be due to changes in the company's performance, compensation policies, or the number of non-employee directors. Franchisees should consider this information in the context of Budget's overall financial health and governance practices.