Form 4: Arq, Inc. CEO Robert Rasmus Receives Restricted Stock and Performance Share Units

CEO Robert Rasmus of Arq, Inc. reports acquisition of restricted stock and performance share units under the company's long-term incentive plan.

Summary

• Robert E. Rasmus, CEO of Arq, Inc., filed a Form 4 detailing changes in his beneficial ownership of the company's securities.
• On March 23, 2025, Rasmus acquired 4,990 shares of common stock as restricted stock awards and 4,990 Performance Share Units (PSUs).
• The restricted stock awards were granted under the 2024 Omnibus Incentive Plan and will vest in three equal annual installments starting on the first anniversary of the grant date.
• Each PSU represents a contingent right to receive one share of Arq, Inc.'s common stock upon vesting, which will occur no later than March 10, 2028, subject to continuous service and achievement of pre-established goals measured as of December 31, 2027.
• Rasmus also indirectly owns 527,779 shares through RER Legacy Investments II LLC, of which he is the ultimate control person, but disclaims beneficial ownership except to the extent of his pecuniary interest.
• Following the reported transactions, Rasmus directly owns 455,782 shares of common stock and 4,990 PSUs.

Sentiment

Score: 7

Explanation: The document is a routine disclosure of executive compensation, which is generally viewed neutrally. The granting of equity awards can be seen as a positive sign of alignment between management and shareholders, but the ultimate value depends on the company's performance.

Positives

• The grant of restricted stock and PSUs aligns the CEO's interests with those of the shareholders through long-term incentives.
• The vesting conditions for the PSUs are tied to performance goals, which could drive value creation for the company.
• The long-term incentive plan was approved by stockholders, indicating support for this type of compensation structure.

Risks

• The vesting of the PSUs is contingent on achieving certain pre-established goals, which may not be met.
• The value of the restricted stock and PSUs is subject to the market price of Arq, Inc.'s common stock, which can fluctuate.

Future Outlook

The document outlines future vesting of restricted stock and performance share units based on continued service and achievement of performance goals.

Industry Context

This type of equity compensation is common for CEOs and other top executives to align their interests with shareholders and incentivize long-term value creation. The specific terms of the grants, such as vesting schedules and performance metrics, are tailored to the company's specific circumstances and goals.

Comparison to Industry Standards

• Equity compensation for CEOs typically includes a mix of restricted stock, stock options, and performance-based equity.
• Vesting schedules for restricted stock often range from three to five years, with annual or quarterly vesting.
• Performance metrics for performance-based equity can include revenue growth, profitability, return on invested capital, and total shareholder return.
• Companies like Tesla, Apple, and Microsoft also use similar long-term incentive plans to reward their executives.

Stakeholder Impact

• Shareholders: The equity grants align the CEO's interests with those of shareholders, incentivizing long-term value creation.
• Employees: The long-term incentive plan may also extend to other employees, motivating them to contribute to the company's success.
• Management: The CEO is incentivized to achieve performance goals and increase shareholder value.

Key Dates

Keywords

Form 4, beneficial ownership, Robert Rasmus, Arq, Inc., restricted stock, performance share units, CEO, incentive plan