Form 4: APA Executive VP Receives RSU Grant, Cash Settlement

APA Corp's Executive VP of Administration, Mark D. Maddox, reported the vesting and cash settlement of restricted stock units and a new RSU grant.

Summary

• Mark D. Maddox, Executive VP Administration at APA Corp, reported transactions related to his beneficial ownership.
• On January 28, 2026, 15,374 Restricted Stock Units (RSUs) vested under the 2023 Performance Program, which were settled in cash.
• The cash settlement was equivalent to 15,374 shares of common stock, disposed of at a price of $25.36 per share.
• Following this, Maddox's direct beneficial ownership of common stock decreased to 72,876.471 shares.
• Additionally, Maddox acquired 30,748 new Restricted Stock Units (RSUs) under the 2023 Performance Program, with the final number determined on January 28, 2026.
• These RSUs are the economic equivalent of common stock but can only be settled in cash.
• Maddox's direct beneficial ownership of derivative securities (RSUs) increased to 75,573 units.
• An indirect beneficial ownership of 4,843.625 common stock is held by a Trustee of an NQ Plan.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, representing routine executive compensation activities. It neither indicates significant positive nor negative operational or financial news for APA Corp.

Positives

• Mark D. Maddox received a cash payout from the vesting of 15,374 Restricted Stock Units, valued at $25.36 per unit.
• Maddox was granted an additional 30,748 Restricted Stock Units, indicating continued compensation and alignment with company performance.

Negatives

• The disposition of 15,374 common stock equivalent units, representing the cash settlement, does not result in an increase in direct share ownership for the executive.

Future Outlook

The filing does not contain specific forward-looking statements or guidance beyond the details of the compensation plan's performance period ending December 31, 2025, and the determination of RSU numbers on January 28, 2026.

Industry Context

StockSavvy.ai notes that executive compensation, particularly through performance-based equity awards like RSUs, is a standard practice across the energy sector. These filings provide transparency into how executive incentives are structured and realized, aligning management interests with long-term company performance, even when settled in cash.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a component of executive compensation is a common practice among publicly traded companies, including those in the oil and gas industry, such as ExxonMobil, Chevron, and ConocoPhillips.
• Cash-settled RSUs, as seen here, are also utilized, offering executives a direct cash benefit tied to company performance without diluting shareholder equity through new share issuance for that specific portion of compensation.
• The 2023 Performance Program under the 2016 Omnibus Compensation Plan aligns with typical multi-year performance cycles seen in peer companies, designed to incentivize sustained performance.

Related Party Transactions

• The reported transactions involve executive compensation for Mark D. Maddox, an Executive VP of APA Corp, which is a standard related-party transaction for insider filings.

Stakeholder Impact

• Shareholders: The cash settlement of RSUs does not directly dilute existing shareholdings, as the units are settled in cash rather than new shares. The grant of new RSUs aligns executive incentives with company performance.
• Employees: The compensation structure for executives can influence overall company morale and perception of fairness in compensation practices.

Key Dates

Keywords

APA Corp, APA, Form 4, Insider Transaction, Restricted Stock Units, RSU, Executive Compensation, Cash Settlement, Performance Program