Form 4: Centuri Holdings SVP, Chief Accounting Officer, Kendra Chilton, Reports Grant of Restricted and Performance Stock Units

Kendra Chilton, SVP, Chief Accounting Officer of Centuri Holdings, Inc., reports the grant of restricted stock units (RSUs) and performance stock units (PSUs) under the company's Omnibus Incentive Plan.

Summary

• On February 25, 2025, Kendra Chilton, SVP, Chief Accounting Officer of Centuri Holdings, Inc., was granted restricted stock units (RSUs) and performance stock units (PSUs) under the company's Omnibus Incentive Plan.
• The grant included 4,470 RSUs, which vest ratably over three years from the grant date.
• The grant also included 6,705 PSUs, with the number of PSUs earned based on performance metrics over a one-year period from January 1, 2025, to December 31, 2025, and a subsequent two-year period from January 1, 2026, to December 31, 2027.
• The number of PSUs earned could range from 50% to 200% of the target number, and earned shares will vest after the performance period.

Sentiment

Score: 7

Explanation: The document is a routine disclosure of executive compensation, which is generally viewed neutrally. The use of performance-based compensation is a positive sign, aligning management's interests with shareholders.

Positives

• The grant of RSUs and PSUs aligns the executive's interests with those of the shareholders.
• The vesting schedule of the RSUs encourages long-term retention.
• The performance-based nature of the PSUs incentivizes the achievement of company goals.

Risks

• The actual number of PSUs earned could be significantly lower than the target if performance metrics are not met.
• The value of the RSUs and PSUs is subject to the market price of Centuri Holdings, Inc. common stock.

Future Outlook

The earned shares from the PSUs will vest after the performance period, contingent on the achievement of certain performance metrics.

Industry Context

Granting stock-based compensation is a common practice in publicly traded companies to align management's interests with those of shareholders and incentivize performance.

Comparison to Industry Standards

• The use of RSUs and PSUs is a standard compensation practice among publicly traded companies.
• The vesting schedule and performance metrics are likely tailored to Centuri Holdings' specific goals and industry benchmarks.
• Comparable companies in the utility infrastructure services sector, such as Quanta Services and MasTec, also utilize similar equity-based compensation plans.

Stakeholder Impact

• Shareholders: The grant of equity-based compensation aligns management's interests with those of shareholders.
• Employees: The Omnibus Incentive Plan may also be available to other employees, potentially boosting morale and incentivizing performance.

Key Dates