Form 4: CRC Executive Preston Reports Stock Vesting, Tax Withholding

California Resources Corp EVP Michael L. Preston reported the vesting of performance stock units and the surrender of shares for tax withholding.

Summary

• Michael L. Preston, EVP, Chief Strategy Officer & General Counsel of California Resources Corp (CRC), reported transactions on February 23, 2026.
• Acquired 13,599 shares of Common Stock at a $0 price, representing performance stock units (PSUs) granted on February 23, 2023, which met their performance criteria.
• Disposed of 11,314 shares of Common Stock at a price of $58.15 per share to satisfy tax withholding obligations related to vested restricted stock units (RSUs) and PSUs.
• Following these transactions, Preston beneficially owns 115,531 shares of Common Stock directly.
• The transactions were made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral. It reports routine executive compensation events (vesting and tax withholding) and does not indicate any discretionary trading or significant change in insider sentiment.

Positives

• The vesting of 13,599 performance stock units indicates that performance criteria set on February 23, 2023, were successfully met.

Negatives

• Disposition of 11,314 shares for tax withholding reduces the executive's direct ownership, though this is a common practice for vested equity awards.

Future Outlook

No specific future outlook or guidance is provided in this Form 4 filing.

Industry Context

StockSavvy.ai notes that routine Form 4 filings, such as this one, are common for executives receiving equity compensation. The vesting of PSUs and subsequent tax withholding are standard practices in executive compensation packages across the energy sector, reflecting the achievement of pre-defined performance targets.

Comparison to Industry Standards

• This transaction aligns with typical executive compensation structures seen in the oil and gas industry, where performance-based equity awards are common.
• For example, executives at peers like EOG Resources or Pioneer Natural Resources often report similar vesting and tax-related dispositions of restricted stock or performance units, indicating a standard approach to incentivizing long-term performance.

Related Party Transactions

• The reported transactions involve an executive of the company acquiring and disposing of company stock, which are considered related party dealings.

Stakeholder Impact

• Shareholders: The vesting of PSUs indicates that performance targets were met, which could be viewed positively. The disposition for tax withholding is a standard practice and has minimal impact on overall share structure.
• Employees: The executive's compensation structure, including performance-based awards, aligns with common industry practices for incentivizing leadership.

Key Dates

Keywords

California Resources Corp, CRC, Michael L. Preston, Form 4, insider trading, stock units, PSUs, RSUs, executive compensation, stock vesting, tax withholding, Rule 10b5-1