4/A: Beyond Meat CEO Ethan Brown Amends SEC Filing to Correctly Report Performance Stock Unit Holdings

Ethan Brown, CEO of Beyond Meat, amends a previous SEC filing to accurately reflect the number of performance stock units (PSUs) beneficially owned following a recent transaction.

Summary

• Ethan Brown, the CEO of Beyond Meat, filed an amendment to a previous Form 4 with the SEC.
• The amendment corrects the number of derivative securities (Performance Stock Units or PSUs) beneficially owned following a transaction on March 1, 2024.
• The original filing on March 5, 2024, incorrectly reported the number of target shares instead of the total number of shares subject to the PSU award.
• The corrected filing shows Brown as beneficially owning 111,194 PSUs exercisable 03/15/2025, 103,450 PSUs exercisable 03/15/2026, and 98,232 PSUs exercisable 03/15/2027.
• Each PSU represents a contingent right to receive one share of Beyond Meat's common stock under the 2018 Executive Incentive Plan.
• Vesting of the PSUs is based on the company's total shareholder return (TSR) compared to a peer group over a one-year performance period, with target vesting at 50% of the total units.
• Vesting is subject to continued service and potential acceleration under an Executive Change in Control Severance Agreement.

Sentiment

Score: 5

Explanation: The document is a routine correction of an SEC filing, indicating a neutral sentiment. It doesn't inherently suggest positive or negative implications for the company's performance.

Future Outlook

The vesting of the Performance Stock Units is contingent upon the company's total shareholder return (TSR) compared to a peer group, indicating a performance-based incentive for the CEO.

Industry Context

Executive compensation through stock options and performance-based units is a common practice in publicly traded companies, particularly in growth-oriented sectors like the plant-based food industry. These incentives are designed to align management's interests with those of shareholders.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded companies, especially in high-growth sectors like the plant-based food industry.
• Companies like Oatly and Tattooed Chef also utilize similar equity-based compensation structures to incentivize their executives.
• The specific vesting criteria, such as TSR compared to a peer group, are also frequently used in executive compensation plans to align management's performance with shareholder value creation.

Key Dates