Form 4: Energy Recovery Inc. Officer Natarajan Ramanan Reports Stock Option Grant and Restricted Stock Units Acquisition

Natarajan Ramanan, Chief Technology Officer of Energy Recovery, Inc., reports the acquisition of stock options and restricted stock units.

Summary

• On March 3, 2025, Natarajan Ramanan, Chief Technology Officer of Energy Recovery, Inc., reported the acquisition of 65,030 employee stock options and 26,455 restricted stock units.
• The stock options have an exercise price of $0 and expire on March 3, 2035, with 25% vesting on the first anniversary of the grant date and the remaining 75% vesting monthly over the following 36 months.
• The restricted stock units vest 25% on each of the first four anniversaries of the grant date and represent the right to receive one share of the company's common stock upon settlement.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard executive compensation practices that align management interests with shareholder value. The grants themselves are a positive sign of investment in the company's leadership.

Positives

• The grant of stock options and restricted stock units to the Chief Technology Officer aligns his interests with those of the shareholders.
• The vesting schedules for both the stock options and restricted stock units incentivize long-term performance and retention.

Industry Context

This type of equity compensation is standard practice for publicly traded companies to incentivize and retain key personnel.

Comparison to Industry Standards

• Granting stock options and restricted stock units to key executives like the CTO is a common practice among publicly traded companies, including those in the energy and technology sectors.
• Companies like Tesla, Google, and Apple also use stock options and restricted stock units as part of their compensation packages to align executive interests with shareholder value.
• The vesting schedules described are also typical, with vesting occurring over several years to encourage long-term commitment.

Stakeholder Impact

• The grant of stock options and restricted stock units can positively impact shareholders by aligning management's interests with the company's long-term success.
• Employees may be motivated by the potential for future gains through stock ownership.

Key Dates