Form 4: Archrock Inc. Executive Jason Ingersoll Reports Stock Award Vesting

Jason Ingersoll, Senior Vice President of Archrock, Inc., reports the vesting of 7,961 shares of common stock on March 5, 2024, following the achievement of a performance-based vesting condition.

Summary

• Jason Ingersoll, a Senior Vice President at Archrock, Inc., reported a transaction on March 5, 2024, related to the vesting of restricted stock units.
• The vesting was based on Archrock's total shareholder return performance relative to its peers between January 1, 2021, and December 31, 2023.
• The Compensation Committee determined that 71% of the target performance was achieved, resulting in the vesting of 7,961 shares.
• Following the transaction, Ingersoll directly owns 297,027 shares of Archrock common stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a standard disclosure of stock vesting based on pre-defined performance criteria. The fact that 71% of the target was met is mildly positive, but not significantly so.

Positives

• The vesting of shares indicates that Archrock achieved a significant portion (71%) of its targeted shareholder return performance relative to its peers.

Industry Context

This filing is a routine disclosure related to executive compensation and is typical for publicly traded companies. The vesting of shares based on performance metrics aligns with common practices to incentivize management to achieve company goals.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded companies, particularly in the energy sector where Archrock operates.
• Companies like Kinder Morgan, Williams Companies, and Enbridge also utilize similar performance metrics, such as total shareholder return, to determine executive compensation.
• The vesting percentage of 71% suggests that Archrock's performance was reasonably competitive within its peer group during the specified period.

Stakeholder Impact

• The vesting of shares has a minor dilutive effect on existing shareholders.
• It incentivizes the executive to continue working towards improving shareholder value.

Key Dates