Form 4: Carrier Global Grants Executive Stock Appreciation Rights, PSUs

Carrier Global Corporation awarded President Thomas Heim 55,485 Stock Appreciation Rights and 15,380 Performance Share Units as part of its long-term incentive plan.

Summary

• Thomas Heim, President, CSE of Carrier Global Corporation (CARR), was granted 55,485 Stock Appreciation Rights (SARs) on January 28, 2026.
• The SARs have an exercise price of $57.91, become exercisable on January 28, 2029, and expire on January 27, 2036.
• Additionally, Mr. Heim was awarded 15,380 Performance Share Units (PSUs) under the Carrier Global Corporation 2020 Long-Term Incentive Plan on January 28, 2026.
• 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 (January 28, 2029), contingent upon Mr. Heim's continued employment and Carrier's achievement of pre-established performance targets.
• Performance targets for PSUs include 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 period.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive development for corporate governance, as it aligns executive incentives with long-term shareholder value through performance-based compensation, without indicating any immediate operational or financial changes.

Positives

• The grants of Stock Appreciation Rights and Performance Share Units align executive incentives with long-term shareholder value creation.
• Performance-based vesting conditions for PSUs encourage management to achieve specific financial and market performance targets, such as EPS growth and relative Total Shareholder Return.

Negatives

• No immediate negatives are identified in this routine executive compensation filing.

Risks

• The value of the PSUs is contingent on Carrier Global Corporation achieving pre-established performance targets for earnings per share growth and total shareowner return, which may not be met.
• The vesting of both SARs and PSUs is contingent on Thomas Heim's continued employment, meaning the awards could be forfeited if employment ceases before the vesting date.

Future Outlook

The vesting of the Performance Share Units is tied to Carrier Global Corporation's future achievement of specific earnings per share growth and total shareowner return targets relative to its industrial peers over a three-year period.

Management Comments

• The awards are part of the Carrier Global Corporation 2020 Long-Term Incentive Plan, reflecting the company's strategy for executive compensation.

Industry Context

StockSavvy.ai notes that performance-based equity awards, such as SARs and PSUs, are a standard practice in executive compensation across the industrial sector, aiming to align executive incentives with shareholder value creation and long-term strategic goals.

Comparison to Industry Standards

• Performance Share Units (PSUs) tied to EPS growth and Total Shareholder Return (TSR) relative to an S&P 500 industrial subset are common in large industrial companies like General Electric, Honeywell, and Siemens, reflecting a best practice for executive incentive alignment.
• Stock Appreciation Rights (SARs) are also a widely used form of equity compensation, providing executives with the appreciation in stock value without requiring an upfront investment, similar to practices at peers such as Johnson Controls and Trane Technologies.

Corporate Governance

Stakeholder Impact

• Shareholders: Potential benefit from enhanced executive motivation to achieve performance targets and increase shareholder value.
• Employees (Thomas Heim): Receives long-term incentive compensation tied to company performance and continued service.

Next Steps

• Thomas Heim's continued employment with Carrier Global Corporation.
• Carrier Global Corporation's achievement of pre-established performance targets for EPS growth and relative TSR over the next three years for PSU vesting.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation grants and does not provide new information that would significantly alter the investment thesis for Carrier Global. The grants align executive incentives with long-term shareholder value, which is a positive for corporate governance, but it's not a catalyst for a 'buy' or 'sell' recommendation.

Keywords

Carrier Global, CARR, Stock Appreciation Rights, SARs, Performance Share Units, PSUs, Executive Compensation, Long-Term Incentive, Thomas Heim, SEC Form 4