Form 4: Carriage Services CEO Receives Equity Awards

Carriage Services CEO Carlos R. Quezada was granted 20,417 restricted shares and 20,417 performance-based awards under the company's 2017 Omnibus Incentive Plan.

Summary

• Carlos R. Quezada, CEO and Director of Carriage Services Inc. (CSV), acquired 20,417 shares of common stock and 20,417 performance-based awards on February 25, 2026.
• The common stock was granted as restricted stock at a price of $44.08 per share, vesting in equal increments over three years beginning February 25, 2027.
• Following this transaction, Mr. Quezada beneficially owns 109,110 shares of common stock.
• The performance-based award, payable in shares, will vest based on the achievement of pre-determined Adjusted Consolidated EBITDA metrics between the grant date and February 28, 2029, subject to certification by the Compensation Committee and continuous employment.
• Both awards were granted under the Carriage Services, Inc. 2017 Omnibus Incentive Plan.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, as it strengthens the alignment of the CEO's incentives with shareholder interests through long-term equity awards tied to performance.

Positives

• The equity awards align the CEO's financial interests with those of shareholders, incentivizing long-term performance.
• The performance-based award ties a significant portion of compensation directly to the company's Adjusted Consolidated EBITDA targets, promoting operational efficiency and profitability.

Negatives

• The issuance of new shares for these awards could lead to minor dilution for existing shareholders, though this is a standard component of executive compensation plans.

Risks

• The vesting of the performance-based award is contingent upon achieving specific Adjusted Consolidated EBITDA targets, meaning the full award may not be realized if these metrics are not met.
• Continuous employment by the Issuer through the vesting date is required for both restricted stock and performance awards, posing a risk of forfeiture if employment ceases.

Future Outlook

The future outlook for Carlos R. Quezada's compensation is tied to the company's performance, specifically its Adjusted Consolidated EBITDA, through February 28, 2029, and his continued employment. The restricted stock will vest in equal increments over three years starting February 25, 2027.

Management Comments

• Restricted Stock grant pursuant to the Carriage Services, Inc. 2017 Omnibus Incentive Plan which will vest in equal increments each year over three years beginning 2/25/2027.
• Represents a performance-based award, payable in shares, granted on February 25, 2026 under the Carriage Services, Inc. 2017 Omnibus Incentive Plan (the 'Plan'). The award will vest (if at all) provided that certain pre-determined performance metrics related to the Issuer's Adjusted Consolidated EBITDA are achieved during the period commencing on the grant date through February 28, 2029, and certified by the Issuer's Compensation Committee of the Board of Directors, subject to terms of the Plan, such award, and the Reporting Person remaining continuously employed by the Issuer through such date.

Industry Context

StockSavvy.ai notes that granting equity awards, including restricted stock and performance-based incentives tied to financial metrics like EBITDA, is a common practice in executive compensation across various industries. This strategy aims to align the interests of top management with long-term shareholder value creation, a standard approach in competitive markets.

Comparison to Industry Standards

• Executive compensation packages often include a mix of base salary, short-term incentives, and long-term equity awards, similar to this grant.
• Tying performance awards to specific financial metrics such as Adjusted EBITDA is a widely adopted practice, comparable to how companies like Service Corporation International (SCI) or StoneMor Inc. (STON) structure their executive incentives to drive operational performance.
• The three-year vesting schedule for restricted stock and the multi-year performance period for performance awards are consistent with typical industry benchmarks designed to encourage sustained leadership and strategic execution.

Corporate Governance

Related Party Transactions

• Grant of 20,417 restricted shares of common stock to CEO Carlos R. Quezada.
• Grant of 20,417 performance-based awards (payable in shares) to CEO Carlos R. Quezada.

Stakeholder Impact

• Shareholders: Potential for increased long-term value creation due to management's aligned incentives; minor potential for dilution from new share issuance.
• Employees: The CEO's continued employment is a condition for vesting, which could signal stability at the top.

Next Steps

• Evaluation of Carriage Services' Adjusted Consolidated EBITDA performance through February 28, 2029, for the vesting of performance awards.
• Annual vesting of restricted stock awards beginning February 25, 2027.

Key Dates

Keywords

Carriage Services, CSV, Carlos R. Quezada, SEC Form 4, Insider Transaction, Restricted Stock, Performance Award, Executive Compensation, Equity Grant, EBITDA