Form 4: CrossAmerica Partners LP Executive Acquires Phantom Units

Stephen J. Lattig, Senior Vice President Retail at CrossAmerica Partners LP, acquired 3,956 phantom units, which are economically equivalent to common units, on December 10, 2024.

Summary

• Stephen J. Lattig, a Senior Vice President at CrossAmerica Partners LP, has reported the acquisition of 3,956 phantom units.
• These phantom units are economically equivalent to common units in the company.
• The acquisition occurred on December 10, 2024.
• The phantom units 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, if the retirement is not adverse to the company's interests, as determined by the Board.
• The unvested portion of the 50% grant will expire 20 years from the grant date.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally positive for aligning interests. There are no indications of negative sentiment.

Positives

• The acquisition of phantom units aligns the executive's interests with those of the common unit holders.
• The vesting schedule encourages long-term commitment from the executive.
• The distribution equivalent rights ensure the executive benefits from the company's performance.

Risks

• The vesting of 50% of the grant is contingent on the board's discretion regarding retirement, which could introduce uncertainty.
• The unvested portion of the 50% grant will expire 20 years from the grant date, which could be a long time for the executive to wait.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

Industry Context

This filing is a routine disclosure of insider transactions, which is common in publicly traded partnerships like CrossAmerica Partners LP. It reflects the company's compensation practices and alignment of executive interests with unitholders.

Comparison to Industry Standards

• The use of phantom units as a form of equity compensation is a common practice among publicly traded partnerships and companies.
• The vesting schedule of three years for a portion of the grant is also typical, aligning with standard long-term incentive plans.
• The vesting of the remaining portion upon death, disability, or retirement is also a common practice to ensure long-term commitment and retention of key personnel.
• Companies like Energy Transfer LP and MPLX LP also use similar equity-based compensation structures for their executives.

Stakeholder Impact

• The acquisition of phantom units by a key executive aligns their interests with those of the unitholders, which is generally positive.
• The vesting schedule encourages long-term commitment from the executive, which can benefit the company and its stakeholders.

Key Dates

Keywords

phantom units, CrossAmerica Partners LP, insider trading, Stephen J. Lattig, equity compensation, vesting, SEC Form 4