Form 4: Aris Water Solutions Director Jacinto J. Hernandez Receives Annual RSU Award

Director Jacinto J. Hernandez received 5,901 shares of Aris Water Solutions Class A common stock as an annual restricted stock unit (RSU) award.

Summary

• Jacinto J. Hernandez, a director of Aris Water Solutions, Inc., received an annual award of 5,901 restricted stock units (RSUs) on March 1, 2025.
• The RSUs were granted as compensation for his duties as a non-employee director under the company's 2021 Equity Incentive Plan.
• Each RSU represents the right to receive one share of Aris Water Solutions' Class A common stock.
• The RSUs will vest on the earlier of the company's 2026 annual meeting of stockholders (if Hernandez is not continuing on the board) or March 1, 2026.
• Settlement of the vested RSUs may be deferred by Hernandez according to his deferral election terms.
• Following the transaction, Hernandez beneficially owns 36,325 shares of Class A Common Stock.

Sentiment

Score: 7

Explanation: The document reflects a routine director compensation event, which is generally viewed neutrally to positively as it aligns director and shareholder interests. There are no indications of negative performance or concerns.

Positives

• The RSU grant aligns the director's interests with those of the shareholders.
• The vesting schedule encourages continued service on the board.

Future Outlook

The document does not contain any specific forward-looking statements regarding the company's future performance, but the RSU grant suggests an expectation of continued service from the director.

Industry Context

Director compensation through equity grants is a common practice in publicly traded companies to align the interests of directors with those of shareholders. The size and terms of the grant are typical for a company of Aris Water Solutions' size and industry.

Comparison to Industry Standards

• Equity compensation for non-employee directors in the energy and water solutions sector typically includes a mix of cash retainers and stock-based awards.
• Companies like Tetra Technologies and Select Water Solutions also utilize RSUs as part of their director compensation packages.
• The vesting schedules are generally aligned with the director's term on the board, encouraging long-term commitment.

Stakeholder Impact

• The RSU grant aligns the director's interests with those of the shareholders, potentially leading to better corporate governance and decision-making.
• The grant has a minor dilutive effect on existing shareholders.

Key Dates

Keywords

RSU, Director Compensation, Equity Incentive Plan, Class A Common Stock, Aris Water Solutions, Form 4, Beneficial Ownership