Form 4: CrossAmerica Partners LP CFO Acquires Phantom Units

CrossAmerica Partners LP's Chief Financial Officer, Maura Topper, acquired 4,747 phantom units, which are economically equivalent to common units, on December 10, 2024.

Summary

• Maura Topper, the Chief Financial Officer of CrossAmerica Partners LP, acquired 4,747 phantom units on December 10, 2024.
• These phantom units are economically equivalent to common units in the company.
• The phantom units also come with distribution equivalent rights, entitling the holder to cash payments equal to the distributions paid to common unit holders.
• 50% of the grant will vest ratably over three years, each as of December 31, until December 31, 2027.
• The remaining 50% will vest upon death, disability, or retirement, provided the retirement is not adverse to the company's interests, as determined by the Board.
• The unvested portion of the 50% retirement grant will expire 20 years from the grant date.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively as it aligns management's interests with those of the unitholders. There are no negative implications.

Positives

• The grant of phantom units aligns the CFO's interests with those of the unitholders.
• The vesting schedule encourages long-term commitment from the CFO.

Risks

• The vesting of the retirement portion of the grant is subject to the board's discretion, which could lead to uncertainty.
• The unvested portion of the retirement grant will expire after 20 years, which could be a long time for the CFO to wait.

Future Outlook

The vesting of the phantom units is tied to continued service and specific events, suggesting a focus on long-term performance and retention of the CFO.

Industry Context

This type of equity compensation is common for executives in publicly traded partnerships to align their interests with those of the unitholders.

Comparison to Industry Standards

• Granting phantom units is a standard practice for compensating executives in the energy sector, particularly in master limited partnerships (MLPs) like CrossAmerica Partners LP.
• Similar companies such as Energy Transfer LP and MPLX LP also use equity-based compensation to align management's interests with unitholder value.
• The vesting schedule of three years for a portion of the grant is also typical, encouraging long-term commitment.
• The vesting upon death, disability, or retirement is a common provision in executive compensation packages.

Stakeholder Impact

• The grant of phantom units aligns the CFO's interests with those of the unitholders, potentially leading to better performance and value creation.
• The vesting schedule encourages long-term commitment from the CFO, which can benefit the company and its stakeholders.

Key Dates

Keywords

phantom units, CrossAmerica Partners LP, insider trading, Maura Topper, CFO, equity compensation, vesting