Form 4: DIRTT Executive Receives Deferred Share Unit Grant

Chief Transformation Officer Adrian Zarate was granted 31,650 deferred share units as part of the company's long-term incentive plan.

Summary

• Adrian Zarate, Chief Transformation Officer at DIRTT Environmental Solutions Ltd., received a grant of 31,650 deferred share units (DSUs).
• The grant was issued on March 31, 2026, under the company's Third Amended and Restated Long Term Incentive Plan.
• Each DSU represents the economic equivalent of one common share of the issuer.
• The DSUs will settle following the cessation of service and employment with the company.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a routine administrative filing regarding executive compensation, which is neutral in terms of immediate market impact.

Positives

• Aligns executive compensation with long-term shareholder interests through equity-based incentives.
• Demonstrates management commitment to the company's long-term performance.

Negatives

• The grant results in potential future dilution of existing common shares upon settlement.

Risks

• Future settlement of DSUs is contingent upon the executive's continued service.
• The value of the compensation is subject to the volatility of the company's common share price.

Future Outlook

The DSUs are intended to vest and settle upon the termination of the executive's service, aligning the executive's financial outcome with the company's long-term equity performance.

Management Comments

• The grant is issued pursuant to the DIRTT Environmental Solutions Ltd. Third Amended and Restated Long Term Incentive Plan.

Industry Context

StockSavvy.ai notes that equity-based compensation for C-suite executives remains a standard practice in the construction and modular building sector to ensure leadership retention and alignment with shareholder value creation.

Comparison to Industry Standards

• The use of Deferred Share Units (DSUs) is a common governance practice among North American publicly traded companies to defer compensation and maintain executive alignment.
• The structure of the incentive plan is consistent with standard long-term incentive programs found in mid-cap industrial firms.

Stakeholder Impact

• Shareholders may experience minor dilution upon the eventual settlement of these units into common shares.

Next Steps

• Settlement of DSUs upon the future termination of the reporting person's service.

Key Dates

Keywords

DIRTT, DRTTF, Form 4, Executive Compensation, Deferred Share Units, Insider Transaction