Form 4: Coterra Energy EVP Shannon E. Young, III, Reports Acquisition of Restricted Stock Units and Performance Stock Units

Shannon E. Young, III, EVP & Chief Financial Officer of Coterra Energy Inc., reports the acquisition of restricted stock units and performance stock units on February 19, 2025.

Summary

• On February 19, 2025, Shannon E. Young, III, EVP & Chief Financial Officer of Coterra Energy Inc., acquired 69,711 shares of common stock in the form of restricted stock units and 69,711 performance stock units.
• The restricted stock units vest on January 31, 2028.
• The performance stock units vest between 0% and 200% based on performance criteria over a three-year period from February 1, 2025, to January 31, 2028, payable in common stock (up to 100%) and cash for vesting above 100%.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects standard executive compensation practices, aligning management with company performance. The vesting conditions suggest a focus on long-term value creation.

Positives

• The acquisition of restricted stock units and performance stock units aligns the executive's interests with the long-term performance of the company.

Future Outlook

Vesting of the performance stock units is dependent on the achievement of certain performance criteria over a three-year period, indicating a focus on long-term performance.

Industry Context

This filing is a routine disclosure of executive compensation in the form of stock-based awards, which is a common practice in the energy industry to incentivize management and align their interests with shareholders.

Comparison to Industry Standards

• Stock-based compensation is a standard practice among publicly traded companies, including Coterra Energy's peers such as EQT Corporation, Southwestern Energy, and Range Resources.
• The vesting schedules and performance metrics associated with these awards are typically designed to align executive compensation with long-term shareholder value creation, similar to industry norms.
• The specific terms of the performance stock units, such as the performance criteria and payout structure, would need to be compared to those of similar awards at peer companies to assess their relative competitiveness and alignment with industry best practices.

Stakeholder Impact

• Shareholders may view the stock unit awards positively as they align executive compensation with company performance.
• Employees may see this as a standard practice for executive compensation.

Key Dates

Keywords

Coterra Energy, Shannon E. Young III, restricted stock units, performance stock units, Form 4, CTRA, executive compensation, beneficial ownership