Form 4: Energy Vault CFO Michael Beer Receives Stock Awards and Options

Energy Vault's CFO, Michael Beer, was granted 1,200,000 restricted stock units and options to purchase 800,000 shares of common stock.

Summary

• Michael Beer, the CFO of Energy Vault Holdings, Inc., received awards of restricted stock units (RSUs) and stock options on May 16, 2024.
• He was granted 600,000 RSUs that will vest as to 25% on June 30, 2025, and the remaining in 12 quarterly installments.
• An additional 600,000 RSUs were granted, vesting in thirds upon achieving stock price targets of $3.50, $4.50, and $5.50 before the fourth anniversary of the grant date.
• Beer also received options to purchase 800,000 shares of common stock at an exercise price of $1.17, vesting similarly to the first RSU grant.
• Following these transactions, Beer directly owns 1,200,000 shares of Energy Vault common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The grant of equity to the CFO is a standard practice and aligns interests, but the value is contingent on future performance.

Positives

• The grants of RSUs and stock options align the CFO's interests with those of the shareholders.
• The vesting schedule based on stock price targets could incentivize value creation.
• The time-based vesting provides a retention incentive for the CFO.

Risks

• If the stock price targets for the performance-based RSUs are not met within four years, those RSUs will be forfeited.
• The value of the stock options is dependent on the stock price exceeding the exercise price of $1.17.

Future Outlook

The vesting of the RSUs is contingent upon continued service and, for a portion, the achievement of specific stock price targets.

Industry Context

Grants of stock options and restricted stock units are common compensation practices for executives in publicly traded companies, aligning their interests with shareholders and incentivizing performance.

Comparison to Industry Standards

• Executive compensation packages, including stock options and RSUs, are standard practice across publicly traded companies.
• Companies like Tesla, Google, and Apple also use stock-based compensation to incentivize their executives.
• The vesting schedules and performance-based metrics are tailored to the specific goals and circumstances of Energy Vault.

Stakeholder Impact

• Shareholders: The grants align management's interests with shareholder value creation.
• Employees: The grants may have a positive impact on employee morale by demonstrating confidence in the company's future.
• The grants have no immediate impact on customers, suppliers, or creditors.

Next Steps

• Monitor the vesting of the RSUs and stock options.
• Track the company's stock price to assess the potential vesting of the performance-based RSUs.

Key Dates