4/A: Altus Power Executive Gregg Felton Amends Filing to Reflect Changes in Stock Price Performance Hurdles for Restricted Stock Units

Gregg Felton, Co-Founder, Co-CEO, and Co-President of Altus Power, Inc., amended a previous SEC filing to reflect changes in the stock price performance hurdles associated with restricted stock units (RSUs).

Summary

• Gregg Felton, a director, 10% owner, officer (Co-Founder, Co-CEO, and Co-President) of Altus Power, Inc., filed an amended Form 4 with the SEC.
• The amendment, filed on April 05, 2024, relates to a previous filing on February 17, 2022, and amended on January 20, 2023.
• The amendment reflects changes to the stock price performance hurdles for 3,245,212 restricted stock units (RSUs) granted on February 15, 2022.
• The compensation committee of Altus Power, Inc. approved the amendment of the stock price performance hurdles on March 28, 2024.
• The RSUs vest over three tranches: approximately 33.3% on the third anniversary, approximately 33.3% on the fourth anniversary, and approximately 33.4% on the fifth anniversary of the grant date.
• 2,596,170 of the RSUs are further conditioned upon a stock price performance hurdle which will be satisfied if the stock price attains 25% annual compound annual growth rate measured based on an initial value of $10.00 per Share (i.e. on each of the third anniversary, the fourth anniversary, and the fifth anniversary of the date of grant, the stock price performance hurdle shall be $14, $18, and $22, respectively).
• Felton also indirectly owns 13,124,603 shares of Class A Common Stock through Felton Asset Management LLC.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing related to executive compensation. The sentiment is neutral, as it primarily describes changes to existing agreements.

Positives

• The amendment of the stock price performance hurdles may better align executive compensation with company performance.
• The vesting schedule of the RSUs encourages long-term commitment from the executive.

Risks

• Failure to meet the stock price performance hurdles could result in the forfeiture of a portion of the RSUs.
• The value of the RSUs is dependent on the future performance of Altus Power, Inc.'s stock.

Future Outlook

The vesting of the RSUs is contingent upon continued service and the achievement of stock price performance hurdles, indicating a focus on long-term growth and executive retention.

Industry Context

This filing is typical for publicly traded companies and their executives, providing transparency regarding equity-based compensation and beneficial ownership.

Comparison to Industry Standards

• Equity compensation is a common practice among publicly traded companies to align executive interests with shareholder value.
• Vesting schedules and performance-based conditions are standard features of RSU grants.
• Comparing the specific performance hurdles and vesting terms to those of peer companies in the renewable energy sector would provide a more detailed assessment of the competitiveness of Altus Power's executive compensation package.

Stakeholder Impact

• Shareholders may view the amended stock price performance hurdles as a positive step towards aligning executive compensation with company performance.
• Employees may be indirectly impacted by the executive's focus on achieving the stock price targets.

Key Dates