Form 4: Clearfield CEO Cheryl Beranek Acquires 16,181 Shares of Restricted Stock

Clearfield's CEO, Cheryl Beranek, acquired 16,181 shares of restricted stock on November 26, 2024, which will vest over three years.

Summary

• Cheryl Beranek, the CEO of Clearfield, Inc., acquired 16,181 shares of restricted stock on November 26, 2024.
• The restricted stock was granted at a price of $0.
• The shares will vest in three equal installments on November 16, 2025, November 16, 2026, and November 16, 2027.
• Vesting is contingent upon Ms. Beranek's continued employment with Clearfield through each vesting date.
• Following this transaction, Ms. Beranek beneficially owns a total of 467,854 shares of Clearfield stock.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively as it aligns management's interests with shareholders. The vesting schedule promotes long-term commitment.

Positives

• The grant of restricted stock to the CEO aligns her interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the CEO.

Risks

• The vesting of the shares is contingent on continued employment, which introduces a risk of forfeiture if the CEO leaves the company before all shares vest.

Future Outlook

The vesting schedule of the restricted stock is tied to the CEO's continued employment, suggesting a focus on long-term stability and leadership continuity.

Industry Context

This type of stock grant is a common practice in the technology industry to incentivize and retain key executives.

Comparison to Industry Standards

• Stock grants are a standard form of compensation for executives in publicly traded companies, particularly in the technology sector.
• Vesting schedules, like the three-year schedule in this case, are typical to ensure long-term alignment of interests.
• Companies like Corning, CommScope, and Juniper Networks also use similar stock-based compensation plans for their executives.

Stakeholder Impact

• Shareholders may view this positively as it aligns the CEO's interests with the company's long-term performance.
• Employees may see this as a sign of stability and commitment from the leadership.

Key Dates

Keywords

Clearfield, Cheryl Beranek, restricted stock, insider trading, executive compensation, stock grant, vesting