Form 4: Arq, Inc. CEO Robert Rasmus Reports Stock Grant and Indirect Holdings

CEO Robert Rasmus reports receiving a grant of common stock and performance share units, while also disclosing indirect ownership through RER Legacy Investments II LLC.

Summary

• Robert E. Rasmus, CEO of Arq, Inc., filed a Form 4 detailing changes in beneficial ownership.
• On August 1, 2024, Rasmus acquired 3,571 shares of common stock and 3,571 performance share units (PSUs) under the company's long-term incentive plan.
• The PSUs will vest no later than March 10, 2027, contingent on continuous service and achievement of pre-established goals measured as of December 31, 2026.
• Rasmus also indirectly owns 527,779 shares through RER Legacy Investments II LLC, for which he disclaims beneficial ownership except to the extent of his pecuniary interest.
• The maximum number of shares that will vest from the PSUs is 7,142, representing 200% of the target award.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The filing reflects standard executive compensation practices and aligns management's interests with shareholders. There are no immediate negative implications.

Positives

• The grant of stock and PSUs aligns the CEO's interests with the long-term performance of the company.
• The vesting of PSUs is tied to performance goals, incentivizing the CEO to achieve specific targets.
• The disclosure provides transparency regarding the CEO's ownership stake in the company.

Risks

• The vesting of PSUs is contingent on performance goals, which may not be achieved.
• The value of the stock and PSUs is subject to market fluctuations.

Future Outlook

The vesting of the PSUs is dependent on the achievement of certain pre-established goals to be measured as of December 31, 2026, and the reporting person's continuous service with the Company or its related entities.

Management Comments

• Mr. Rasmus disclaims beneficial ownership of shares held by RER Legacy Investments II LLC except to the extent of his pecuniary interest therein.

Industry Context

Executive compensation packages often include stock and performance-based incentives to align management's interests with shareholders. This Form 4 filing reflects standard practice in publicly traded companies.

Comparison to Industry Standards

• Stock grants and performance share units are common components of executive compensation packages in publicly traded companies.
• The specific terms of the PSU vesting (performance goals, service requirements, and vesting date) are typical elements found in similar arrangements at comparable companies.
• Companies like Peabody Energy, Arch Resources, and Consol Energy also utilize similar long-term incentive plans for their executives.

Stakeholder Impact

• Shareholders may view the stock grant and PSUs as a positive sign, aligning management's interests with long-term value creation.
• Employees may be motivated by the CEO's increased stake in the company's success.

Key Dates