Form 4: Arq Inc. Executive Granted Performance Share Units

Claiborne Benson Smith, General Counsel and Corporate Secretary of Arq, Inc., was granted performance share units under the company's long-term incentive plan.

Summary

• On August 1, 2024, Claiborne Benson Smith, General Counsel and Corporate Secretary of Arq, Inc., received 19,810 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.
• Vesting will occur no later than March 10, 2027, contingent on continuous service and achievement of pre-established goals measured as of December 31, 2026.
• The maximum number of PSUs that will vest is 39,620, representing 200% of the target award.
• Following the transaction, Smith directly owns 66,279 shares of Arq, Inc. common stock and 19,810 PSUs.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating a positive outlook for aligning management incentives with shareholder value. The sentiment is moderately positive as it suggests confidence in the executive's ability to contribute to the company's success.

Positives

• The grant of performance share units aligns the executive's interests with those of the shareholders, incentivizing performance and long-term value creation.
• The vesting criteria, based on continuous service and achievement of pre-established goals, promote stability and focus on strategic objectives.

Risks

• The actual number of shares received from the PSUs depends on the achievement of performance goals, which introduces uncertainty.
• The value of the shares received will depend on the future stock price of Arq, Inc., which is subject to market fluctuations.

Future Outlook

The performance share units are part of a long-term incentive plan designed to reward executives for achieving company goals and increasing shareholder value.

Industry Context

Granting stock-based compensation is a common practice in publicly traded companies to align executive incentives with shareholder value. The specific terms of the grant, such as the vesting schedule and performance metrics, are tailored to the company's specific goals and circumstances.

Comparison to Industry Standards

• Performance share units are a common form of executive compensation, often used by companies similar to Arq, Inc. to incentivize long-term performance.
• Companies like Peabody Energy and Alliance Resource Partners, which operate in related industries, also utilize long-term incentive plans with performance-based vesting.
• The vesting period of approximately 3 years is fairly standard for PSU grants.

Stakeholder Impact

• Shareholders: The PSU grant aims to align executive interests with shareholder value creation.
• Employees: The long-term incentive plan can boost morale and encourage employees to work towards company goals.

Key Dates