Form 4: CrossAmerica Partners Director Receives Equity Grant

CrossAmerica Partners LP Director Mickey Kim was granted 3,154 phantom units, aligning executive compensation with shareholder interests.

Summary

• Director Mickey Kim of CrossAmerica Partners LP (CAPL) was granted 3,154 phantom units on July 23, 2025.
• Each phantom unit is the economic equivalent of one common unit representing a limited partner interest in CrossAmerica Partners L.P.
• The phantom units are accompanied by tandem distribution equivalent rights, entitling the holder to cash payments equal to distributions paid to common unit holders.
• The units will vest in one annual installment on the first anniversary of the grant date, provided continuous service as a director.
• Upon vesting, the phantom units will be converted into either cash or common units, at the discretion of the Issuer.
• Following this transaction, Mickey Kim beneficially owns a total of 30,844 derivative securities (phantom units).

Sentiment

Score: 7

Explanation: The grant of phantom units to a director is a positive development as it aligns the director's interests with those of the shareholders, promoting long-term value creation. It is a standard and expected form of compensation.

Positives

• The grant of phantom units aligns the director's financial interests with those of the common unit holders, promoting long-term value creation.
• Equity-based compensation is a standard practice that helps retain experienced leadership.

Risks

• The value of the phantom units upon vesting is subject to the future performance of CrossAmerica Partners LP's common units.
• The conversion of phantom units into cash or common units is at the discretion of the Issuer, which could impact the director's ultimate payout.

Future Outlook

The phantom units are set to vest in one annual installment on July 23, 2026, contingent on the director's continuous service. Upon vesting, the units will be converted into either cash or common units at the Issuer's discretion.

Industry Context

Equity grants, such as phantom units, are a common form of executive and director compensation across various industries, including the energy and retail sectors where CrossAmerica Partners operates. They are designed to align the interests of leadership with those of shareholders by tying compensation to company performance.

Comparison to Industry Standards

• Equity-based compensation for directors is a standard practice across publicly traded companies, including those in the midstream and retail fuel distribution sectors like CrossAmerica Partners LP.
• The use of phantom units, which provide economic exposure without immediate share ownership, is also a common mechanism for deferred compensation and aligns with best practices for non-employee director compensation.

Corporate Governance

Related Party Transactions

• The grant of phantom units to Director Mickey Kim constitutes a related party transaction, as it involves compensation from the Issuer to a member of its board of directors.

Stakeholder Impact

• Shareholders: The equity grant aligns the director's interests with shareholders, potentially leading to decisions that enhance long-term unit value.
• Employees: No direct impact on general employees is indicated by this filing.

Next Steps

• The phantom units are scheduled to vest on July 23, 2026, subject to the director's continued service.
• Upon vesting, the Issuer will determine whether to convert the phantom units into cash or common units.

Key Dates

Keywords

CrossAmerica Partners LP, CAPL, Mickey Kim, Director Compensation, Phantom Units, Equity Grant, SEC Form 4, Insider Transaction, Executive Compensation, Limited Partnership