Form 4: Carrier Global Executive Awarded Equity Compensation

Carrier Global's SVP, Services & Chief Business Development Officer, Ajay Agrawal, received an award of 39,560 Stock Appreciation Rights and 10,965 Performance Share Units.

Summary

• Ajay Agrawal, SVP, Services & Chief Business Development Officer of Carrier Global Corp (CARR), was granted equity compensation.
• The award includes 39,560 Stock Appreciation Rights (SARs) with an exercise price of $57.91.
• The SARs become exercisable on January 28, 2029, and expire on January 27, 2036.
• Additionally, 10,965 Performance Share Units (PSUs) were awarded under the Carrier Global Corporation 2020 Long-Term Incentive Plan.
• Each PSU represents a contingent right to receive one share of Carrier Global Corporation common stock.
• PSUs vest on the third anniversary of the grant date (January 28, 2029), contingent on continued employment and Carrier's achievement of pre-established performance targets.
• Performance targets for PSUs include 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: StockSavvy.ai views this as a moderately positive development, as it represents a standard executive compensation practice that aligns management's interests with long-term shareholder value through performance-based incentives.

Positives

• The grant of Stock Appreciation Rights and Performance Share Units aligns the executive's financial interests with the long-term performance and shareholder value creation of Carrier Global Corporation.
• Performance Share Units are contingent on achieving specific financial targets (EPS growth and TSR relative to peers), incentivizing strong company performance.

Risks

• The vesting of Performance Share Units is contingent upon the reporting person's continued employment, posing a risk of forfeiture if employment ceases.
• PSU vesting is also contingent on Carrier's achievement of pre-established performance targets, meaning the full award may not be realized if performance goals are not met.

Future Outlook

The Performance Share Units are designed to incentivize future performance, with vesting contingent on Carrier's achievement of specific earnings per share growth and total shareholder return targets relative to S&P 500 industrial peers over a three-year period.

Management Comments

• Ajay Agrawal, Senior Vice President (SVP), Global Services & Chief Business Development Officer, was awarded equity compensation as part of the company's long-term incentive plan.

Industry Context

StockSavvy.ai notes that the grant of equity-based compensation, such as Stock Appreciation Rights and Performance Share Units, is a common practice across industries, particularly for senior executives. This approach is widely used to align management incentives with shareholder interests and promote long-term value creation, a standard component of competitive executive compensation packages.

Comparison to Industry Standards

• The use of Stock Appreciation Rights (SARs) and Performance Share Units (PSUs) is a standard component of executive compensation packages in large industrial companies, comparable to practices at peers like Johnson Controls (JCI) or Trane Technologies (TT).
• Tying PSU vesting to performance targets such as EPS growth and Total Shareholder Return (TSR) relative to an S&P 500 industrial subset is a common best practice for incentivizing long-term, market-aligned performance, similar to structures seen in companies like Honeywell (HON) or Eaton (ETN).

Stakeholder Impact

• Shareholders: The performance-based nature of the PSUs aims to benefit shareholders by linking executive compensation to company performance and total shareholder return.
• Employees: The continued employment condition for PSU vesting incentivizes executive retention.

Next Steps

• The Stock Appreciation Rights will become exercisable on January 28, 2029.
• The Performance Share Units will vest on January 28, 2029, contingent upon continued employment and the achievement of specified performance targets over the three-year period.

Key Dates

Keywords

Carrier Global, CARR, SEC Form 4, Executive Compensation, Stock Appreciation Rights, Performance Share Units, Equity Award, Long-Term Incentive Plan