Form 4: Aris Water Solutions Director Mario Max Yzaguirre Receives Stock Award

Director Mario Max Yzaguirre received 9,352 shares of Aris Water Solutions Class A Common Stock as part of an annual restricted stock unit (RSU) award.

Summary

• On July 1, 2024, Mario Max Yzaguirre, a director of Aris Water Solutions, Inc., acquired 9,352 shares of Class A Common Stock.
• This acquisition was due to an annual award of restricted stock units (RSUs) granted as compensation for his role as a non-employee director.
• The RSUs were granted 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 2025 annual meeting of stockholders (if Yzaguirre is no longer on the board) or July 1, 2025.
• Yzaguirre directly owns 49,774 shares of Class A Common Stock following the reported transaction.
• Yzaguirre has granted power of attorney to Amanda M. Brock, Stephan Tompsett, and Robert W. Hunt, Jr. to handle SEC filings on his behalf.

Sentiment

Score: 7

Explanation: The document reflects a standard compensation practice, indicating stability and alignment of interests. It's a neutral positive.

Positives

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

Future Outlook

Settlement of vested RSUs may be deferred by the Reporting Person, in which case, settlement will occur pursuant to the terms of the Reporting Person's applicable deferral election.

Industry Context

Stock awards to directors are a common practice to align their interests with shareholders and incentivize their service.

Comparison to Industry Standards

• Director compensation packages vary widely across the industry, but equity-based compensation is a standard component.
• Companies like Halliburton and Schlumberger also use stock awards as part of their director compensation.

Stakeholder Impact

• The stock award aligns the director's interests with those of the shareholders, potentially leading to better decision-making.
• The award does not have a direct impact on employees, customers, suppliers, or creditors.

Next Steps

• The RSUs will vest on the earlier of the 2025 annual meeting or July 1, 2025.
• Settlement of vested RSUs may be deferred by the Reporting Person.

Key Dates