Form 4: CSW Industrials EVP, CFO James E. Perry Reports Stock Transactions
SEC Form 4 Filing
James E. Perry, EVP and CFO of CSW Industrials, reports the vesting and settlement of performance rights, along with associated tax withholding.
Summary
- On April 2, 2025, James E. Perry, the EVP and CFO of CSW Industrials, engaged in transactions involving the company's common stock.
- Perry acquired 5,986 shares of common stock upon the vesting of performance rights, with a value of $0 per share.
- He also disposed of 2,365 shares to cover tax obligations at a price of $295.91 per share.
- Following these transactions, Perry directly owns 26,758 shares and indirectly owns 452 shares through an ESOP.
- The performance rights vested based on CSW Industrials' relative total shareholder return compared to the Russell 2000 Index over a three-year performance cycle ending March 31, 2025, at 200% of the target award amount.
- Remaining performance rights will vest in the future based on similar performance metrics over different three-year cycles.
Sentiment
Score: 7
Explanation: The vesting of performance rights at 200% is a positive signal, suggesting strong company performance. However, the subsequent sale of shares for tax obligations is a neutral event.
Positives
- The vesting of performance rights at 200% suggests strong performance relative to the Russell 2000 Index during the performance period.
Negatives
- The disposal of shares to cover tax obligations reduces Perry's overall holdings in the company.
Future Outlook
Future performance rights will vest based on the company's relative total shareholder return compared to the Russell 2000 Index over three-year performance cycles ending in 2026 and 2027.
Industry Context
Form 4 filings are routine disclosures required by the SEC to provide transparency into the transactions of company insiders. This filing indicates activity related to executive compensation and equity awards.
Comparison to Industry Standards
- Performance-based equity awards are a common component of executive compensation packages in publicly traded companies.
- The use of relative total shareholder return (TSR) compared to an index like the Russell 2000 is a standard benchmark for measuring performance.
- Companies like Roper Technologies, Fortive, and ITT Inc. also use similar performance metrics in their executive compensation plans.
Stakeholder Impact
- Shareholders may view the vesting of performance rights as a positive indicator of company performance.
- Employees may be motivated by the potential for future performance-based compensation.
Key Dates
| Date | Description |
|---|---|
| 04/01/2023 | Start date of a three-year performance cycle for performance rights. |
| 04/01/2024 | Start date of a three-year performance cycle for performance rights. |
| 03/31/2025 | End date of a three-year performance cycle for performance rights. |
| 04/02/2025 | Date of the reported stock transactions. |
| 03/31/2026 | End date of a three-year performance cycle for performance rights. |
| 03/31/2027 | End date of a three-year performance cycle for performance rights. |
| 04/04/2024 | Date of signature for the report. |
Keywords
CSW Industrials, James E. Perry, Form 4, Performance Rights, Stock Transactions, Beneficial Ownership, Russell 2000 Index, Tax Withholding
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