Form 4: Arq, Inc. COO Jeremy Williamson Reports Acquisition of Performance Share Units

Arq, Inc.'s Chief Operating Officer, Jeremy Williamson, reported the acquisition of performance share units (PSUs) under the company's long-term incentive plan.

Summary

• On August 1, 2024, Jeremy Williamson, the Chief Operating Officer of Arq, Inc., reported the acquisition of 21,667 performance share units (PSUs).
• These PSUs were granted under the company's 2024 Omnibus Incentive Plan, which was approved by stockholders on June 10, 2024.
• Each PSU represents a contingent right to receive one share of Arq, Inc.'s common stock upon vesting, potentially occurring no later than March 10, 2027.
• Vesting is contingent upon continuous service with the company and the achievement of pre-established goals measured as of December 31, 2026.
• The maximum number of PSUs that can vest is 43,334, representing 200% of the target award.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The granting of PSUs is a standard practice and aligns management with shareholder interests. The vesting criteria based on performance goals can drive positive outcomes.

Positives

• The grant of PSUs aligns management's interests with those of the shareholders through long-term incentives.
• The vesting criteria based on continuous service and achievement of pre-established goals can drive performance and retention.
• The 2024 Omnibus Incentive Plan was approved by stockholders, indicating support for the company's compensation strategy.

Risks

• The actual number of PSUs that will vest is uncertain and depends on the achievement of performance goals.
• If the performance goals are not met, the PSUs may not vest, potentially impacting management's motivation.
• The value of the PSUs is tied to the company's stock price, which is subject to market fluctuations.

Future Outlook

The vesting of the PSUs is contingent upon 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.

Industry Context

The granting of performance share units is a common practice in corporate compensation to align executive incentives with shareholder value. These grants are typically tied to company performance metrics and are designed to motivate executives to achieve specific goals.

Comparison to Industry Standards

• Many companies in the same industry as Arq, Inc. use performance-based equity compensation, such as PSUs, to incentivize their executives.
• The specific terms of the PSU grants, such as the vesting criteria and performance goals, would need to be compared to those of similar companies to assess their competitiveness.
• Companies like Clean Energy Fuels Corp. and FuelCell Energy, Inc. also utilize equity-based compensation plans, but the details of their plans would need to be examined for a direct comparison.

Stakeholder Impact

• Shareholders may view the PSU grants positively as they align management's interests with increasing shareholder value.
• Employees may be motivated by the potential for management to drive company performance and achieve the goals required for PSU vesting.

Key Dates