Form 4: Archrock Director Edmund P. Segner III Receives Restricted Stock Units

Director Edmund P. Segner III of Archrock, Inc. was granted 4,668 restricted stock units on January 30, 2025, under the company's 2020 Stock Incentive Plan.

Summary

• Edmund P. Segner III, a director at Archrock, Inc., received 4,668 restricted stock units on January 30, 2025.
• These units were granted under the company's 2020 Stock Incentive Plan.
• The restricted stock units vest in four equal installments of 25% each on the grant date, June 1, September 1, and December 1, 2025.
• The units are payable on a one-for-one basis in shares of common stock, with the option for deferred delivery.
• The award is subject to forfeiture or accelerated vesting based on certain events outlined in the Award Notice and Agreement.
• Following this transaction, Mr. Segner beneficially owns 128,987 shares of Archrock common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine compensation practice, which is generally positive for aligning director and shareholder interests. There are no indications of negative sentiment.

Positives

• The grant of restricted stock units aligns the director's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the director.
• The option for deferred delivery provides flexibility for the director's financial planning.

Risks

• The restricted stock units are subject to forfeiture, which could impact the director's compensation if certain conditions are not met.
• The value of the restricted stock units is tied to the performance of Archrock's stock, which is subject to market fluctuations.

Future Outlook

The restricted stock units will vest over time, aligning the director's interests with the long-term performance of the company.

Industry Context

The granting of restricted stock units is a common practice for compensating directors and aligning their interests with shareholders in publicly traded companies.

Comparison to Industry Standards

• The use of restricted stock units for director compensation is a standard practice across many industries, including energy and oil and gas services, where Archrock operates.
• Companies like Kinder Morgan and Williams Companies also use similar equity-based compensation plans for their directors.
• The vesting schedule of 25% on the grant date and then quarterly is fairly standard, although some companies may use different vesting periods or performance-based vesting criteria.

Stakeholder Impact

• Shareholders may view the grant of restricted stock units as a positive sign of aligning director interests with long-term company performance.
• The director benefits from the potential increase in the value of the stock units.

Next Steps

• The restricted stock units will vest according to the schedule outlined in the document.
• The director will receive shares of common stock upon vesting, or may elect for deferred delivery.

Key Dates

Keywords

restricted stock units, stock incentive plan, beneficial ownership, director compensation, Archrock, AROC, vesting