Form 4: Carrier Global Corp: CEO David Gitlin Reports Stock Appreciation Right Award

Chairman and CEO of Carrier Global Corp, David L. Gitlin, reports the acquisition of stock appreciation rights and performance share units.

Summary

• David L. Gitlin, Chairman and CEO of Carrier Global Corp, filed a Form 4 on February 10, 2025.
• The filing reports a transaction on February 6, 2025, where Gitlin acquired 321,970 Stock Appreciation Rights (SARs) at an exercise price of $65.21.
• These SARs become exercisable on February 6, 2028, and expire on February 5, 2035.
• Gitlin also received 88,150 Performance Share Units (PSUs) under the company's 2020 Long-Term Incentive Plan.
• Each PSU represents a contingent right to receive one share of Carrier Global Corporation common stock.
• The PSUs vest on the third anniversary of the grant date, contingent upon continued employment and the achievement of performance targets related to earnings per share growth and total shareholder return relative to a subset of industrial companies in the S&P 500 index over a three-year period.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating alignment of management and shareholder interests, which is generally viewed positively.

Positives

• The award of SARs and PSUs aligns the CEO's interests with those of the shareholders, incentivizing him to improve company performance and increase shareholder value.
• The vesting conditions for the PSUs, based on earnings per share growth and total shareholder return relative to a subset of industrial companies in the S&P 500 index, encourage strong relative performance.

Risks

• The value of the SARs is dependent on the future stock price of Carrier Global Corp, which is subject to market fluctuations and company-specific risks.
• The PSUs may not vest if the company fails to meet the pre-established performance targets for earnings per share growth and total shareholder return.

Future Outlook

The vesting of the PSUs is contingent upon Carrier's achievement of pre-established performance targets for earnings per share growth and total shareowner return relative to a subset of industrial companies in the S&P 500 index over a three-year time period.

Industry Context

Executive compensation packages often include stock options, SARs, and PSUs to align management's interests with those of shareholders. The specific terms and conditions of these awards vary depending on the company and industry.

Comparison to Industry Standards

• Comparing Carrier's executive compensation structure to peers like Trane Technologies (TT), Johnson Controls (JCI), and Honeywell (HON) would provide a benchmark for assessing the competitiveness and appropriateness of the awards.
• The performance metrics used for PSU vesting, such as earnings per share growth and total shareholder return, are common in the industry.
• Benchmarking the size of the awards relative to company size and executive compensation levels at comparable companies would offer further context.

Stakeholder Impact

• Shareholders may view the granting of SARs and PSUs as a positive sign, as it incentivizes the CEO to improve company performance and increase shareholder value.
• Employees may be indirectly impacted by the CEO's incentives, as his focus on company performance could lead to improved job security and career opportunities.

Key Dates

Keywords

Stock Appreciation Rights, Performance Share Units, Form 4, Incentive Plan, David Gitlin, Carrier Global, CARR, CEO