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

Director Jacinto J. Hernandez received 9,352 shares of Aris Water Solutions Class A common stock as part of an annual restricted stock unit (RSU) award.

Summary

• Jacinto J. Hernandez, a director of Aris Water Solutions, Inc., received an award of 9,352 shares of Class A common stock on July 1, 2024.
• The award was granted as restricted stock units (RSUs) under the company's 2021 Equity Incentive Plan as compensation for his duties as a non-employee director.
• Each RSU represents the right to receive one share of the Issuer's Class A common stock.
• The RSUs will vest on the earlier of the company's 2025 annual meeting of stockholders (if Hernandez is no longer on the board) or July 1, 2025.
• Settlement of vested RSUs may be deferred by Hernandez according to the terms of his deferral election.
• Following the transaction, Hernandez directly owns 30,424 shares of Aris Water Solutions Class A Common Stock.

Sentiment

Score: 7

Explanation: The document reflects a standard compensation practice, indicating stability and alignment of interests. It's a neutral event with a slightly positive implication for corporate governance.

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 specific forward-looking statements regarding the company's financial performance or future prospects, but the RSU grant suggests an expectation of continued contributions from the director.

Industry Context

This type of equity compensation is common for directors of publicly traded companies to align their interests with shareholders and incentivize their service.

Comparison to Industry Standards

• Equity compensation for board members is a standard practice across publicly traded companies.
• The amount of equity granted to directors varies based on company size, industry, and individual contributions.
• Comparable companies in the water solutions or energy sectors also utilize RSUs and stock options as part of their director compensation packages.
• It is common to see vesting schedules tied to continued service on the board, similar to the terms outlined in this document.

Stakeholder Impact

• Shareholders: The RSU grant aligns the director's interests with those of the shareholders.
• Employees: The RSU grant is part of the overall compensation structure, which can impact employee morale and retention.

Key Dates