Form 4: Clearfield CEO Granted 25,545 Restricted Shares

Clearfield, Inc. CEO Cheryl Beranek received a grant of 25,545 restricted stock units, increasing her beneficial ownership to 513,791 shares.

Summary

• Cheryl Beranek, Director and Chief Executive Officer of Clearfield, Inc. (CLFD), acquired 25,545 shares of restricted stock.
• The transaction date for this acquisition was November 28, 2025.
• The acquisition price for these restricted shares was $0, indicating a grant rather than a purchase.
• Following this transaction, Cheryl Beranek beneficially owns a total of 513,791 shares.
• The restricted stock vests in three equal installments: one-third on November 16, 2026, one-third on November 16, 2027, and the final one-third on November 16, 2028.
• Vesting is contingent upon Cheryl Beranek's continued employment through each respective vesting date.

Sentiment

Score: 7

Explanation: The grant of restricted stock to the CEO is a positive signal for management retention and aligns executive incentives with long-term shareholder value creation, which is generally viewed favorably.

Positives

• The grant of restricted stock aligns the Chief Executive Officer's long-term interests with those of shareholders, as the value of the compensation is tied to the company's stock performance.
• This type of equity compensation serves as a retention incentive, encouraging the CEO to remain with the company through the vesting periods.

Risks

• The vesting of the restricted stock is subject to the reporting person's continued employment through each vesting date, meaning unvested shares would be forfeited if employment ceases prior to those dates.

Future Outlook

The vesting schedule for the restricted stock units extends through November 2028, indicating a long-term commitment from the CEO to the company's performance and continued employment.

Industry Context

The grant of restricted stock to a Chief Executive Officer is a common and widely accepted practice in publicly traded companies across various industries. It is a standard component of executive compensation packages designed to incentivize long-term performance and align management interests with shareholder value creation.

Comparison to Industry Standards

• The grant of restricted stock as a form of executive compensation is a standard practice consistent with global benchmarks for public companies.
• The vesting schedule over multiple years is typical for such grants, aiming to retain key executives and link their compensation to sustained company performance.

Related Party Transactions

• The grant of restricted stock to Cheryl Beranek, the Chief Executive Officer and a Director, constitutes a related party transaction, which is a standard component of executive compensation.

Stakeholder Impact

• Shareholders: The grant aligns the CEO's financial interests with long-term shareholder value, potentially leading to more focused strategic decisions.
• Employees (CEO): The CEO receives significant equity compensation, incentivizing continued high performance and retention.

Next Steps

• Vesting of one-third of the restricted shares on November 16, 2026.
• Vesting of one-third of the restricted shares on November 16, 2027.
• Vesting of the final one-third of the restricted shares on November 16, 2028.

Key Dates

Recommendation

This Form 4 reports a routine grant of restricted stock to the CEO as part of her compensation package. While it aligns management incentives with shareholder interests, it does not provide new information that would warrant a change in investment recommendation based solely on this filing. It is a standard corporate governance event.

Keywords

Clearfield, CLFD, Restricted Stock, Stock Grant, Executive Compensation, Insider Transaction, Form 4, Cheryl Beranek, CEO