Form 4: Energy Recovery CLO Granted 25,959 Restricted Stock Units

Energy Recovery's Chief Legal Officer, William Yeung, was granted 25,959 restricted stock units, which will vest over four years.

Summary

• William Yeung, Chief Legal Officer of Energy Recovery, Inc. (ERII), was granted 25,959 shares of common stock in the form of restricted stock units (RSUs).
• The transaction date for this grant was February 17, 2026.
• Each restricted stock unit represents the right to receive one share of the Company's common stock upon settlement.
• The RSUs will vest in equal installments of 25% on the first four anniversaries of the grant date.
• Following this transaction, William Yeung directly beneficially owns 104,167 shares of common stock and indirectly owns 5,568 shares through his spouse.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive event, reflecting routine executive compensation and a commitment to retaining key talent, which is generally a positive for corporate stability.

Positives

• The grant of restricted stock units aligns the Chief Legal Officer's long-term interests with those of shareholders, as the value of the compensation is tied to the company's stock performance.
• This type of equity compensation serves as a retention tool, incentivizing the executive to remain with the company for the vesting period.

Future Outlook

The restricted stock units granted to the Chief Legal Officer are scheduled to vest over the next four years, with 25% vesting on each anniversary of the grant date, indicating a commitment to long-term executive retention and performance alignment.

Industry Context

StockSavvy.ai notes that the grant of restricted stock units to a key executive is a standard and widely adopted practice in corporate compensation across various industries. This method is commonly used to align the interests of management with those of shareholders and to incentivize long-term performance and executive retention.

Comparison to Industry Standards

• The grant of restricted stock units (RSUs) to a Chief Legal Officer, with a four-year vesting schedule, aligns with common executive compensation practices observed across publicly traded companies.
• This structure is widely used to incentivize long-term performance and retain key talent, similar to practices seen in comparable industrial technology and water solutions companies.

Related Party Transactions

• William Yeung's indirect beneficial ownership of 5,568 shares through his spouse is noted.

Stakeholder Impact

• Shareholders: The RSU grant aligns the Chief Legal Officer's financial incentives with shareholder value creation over the long term.
• Employees: This compensation structure can signal stability in executive leadership and a commitment to retaining key personnel.

Next Steps

• The restricted stock units will vest in four annual installments, with the first vesting on February 17, 2027, and subsequent vestings on the same date in 2028, 2029, and 2030.

Key Dates

Keywords

Energy Recovery, ERII, Restricted Stock Units, RSU Grant, Insider Transaction, Executive Compensation, William Yeung, Form 4