Form 4: Element Solutions Inc. Executive Matthew Liebowitz Reports Stock Transactions

Matthew Liebowitz, EVP at Element Solutions Inc., reports the vesting and subsequent tax withholding of shares related to performance and restricted stock units.

Summary

• On February 12, 2025, Matthew Liebowitz, EVP of Strategy and Head of I&S at Element Solutions Inc., filed a Form 4 detailing changes in beneficial ownership of the company's stock.
• The transactions include the settlement of performance restricted stock units (PRSUs) and restricted stock units (RSUs) previously awarded.
• A total of 7,166 shares were acquired through the settlement of PRSUs, with 2,864 shares withheld to cover tax obligations at a price of $25.81 per share.
• Additionally, 4,222 shares were acquired through the settlement of RSUs, with 1,662 shares withheld for taxes at the same price.
• Further RSU settlements resulted in the acquisition of 3,353 and 2,388 shares, with corresponding tax withholdings of 1,320 and 1,067 shares respectively, also at $25.81 per share.
• Liebowitz also received grants of 23,248 performance stock units and 11,623 restricted stock units.
• Following these transactions, Liebowitz directly owns 107,353 shares of Element Solutions Inc.
• Liebowitz has granted power of attorney to Carey J. Dorman, John E. Capps, and Caroline S. Lind to execute and file Forms 3, 4, and 5 on his behalf.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transactions are routine and related to executive compensation. There is no indication of unusual activity or concern.

Positives

• The vesting of stock units indicates that performance metrics have been met, which could be seen as a positive sign for the company's performance.
• The executive's continued holding of a significant number of shares (107,353) demonstrates confidence in the company's future.

Future Outlook

The performance stock units granted are subject to the achievement of certain adjusted EBITDA compound annual growth and adjusted earnings per share goals for the performance period ending on December 31, 2027, and a relative total shareholder return (TSR) modifier.

Industry Context

Executive stock transactions are common and closely monitored as they can provide insights into management's confidence in the company's prospects. Vesting of equity awards is a regular part of executive compensation.

Comparison to Industry Standards

• Executive compensation packages often include a mix of salary, bonus, and equity-based compensation, such as stock options, restricted stock units, and performance stock units.
• The vesting schedules and performance metrics associated with these equity awards are typically designed to align executive incentives with shareholder value creation.
• Companies like Dow, DuPont, and BASF also utilize similar equity compensation structures for their executives.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they involve the vesting of previously granted equity awards.
• Employees may be affected by the company's performance, which influences the vesting of performance-based equity awards.

Key Dates