Form 4: EnerSys CEO David M. Shaffer Receives Stock Units as Dividend Compensation
SEC Form 4
EnerSys CEO David M. Shaffer received stock units related to cash dividends paid on unvested Restricted Stock Units (RSUs).
Summary
- On June 28, 2024, EnerSys CEO David M. Shaffer received additional shares of common stock in the form of Restricted Stock Units (RSUs).
- These RSUs were granted in connection with the cash dividend paid to stockholders of record as of June 14, 2024.
- The RSUs are related to previously granted unvested RSUs from August 2020, August 2021, August 2022, and August 2023.
- A total of 166.8539 shares were granted as dividend compensation.
- Shaffer's total direct holdings after the transaction amount to 229,453.9408 shares.
Sentiment
Score: 7
Explanation: The document reflects a routine transaction related to executive compensation and dividend payments, which is generally neutral to positive as it aligns executive interests with shareholders.
Positives
- The receipt of RSUs as dividend compensation aligns the CEO's interests with those of the shareholders.
Industry Context
This is a standard practice for compensating executives when dividends are paid on unvested equity awards, ensuring they are treated similarly to other shareholders.
Comparison to Industry Standards
- Granting RSUs in lieu of cash dividends on unvested shares is a common practice among publicly traded companies to maintain equity alignment.
- Companies like Tesla, Apple, and Microsoft also use similar methods to compensate for dividends on unvested shares.
Stakeholder Impact
- The transaction has a minor positive impact on shareholders as it ensures fair treatment of executives holding unvested equity.
Key Dates
| Date | Description |
|---|---|
| 08/17/2020 | Date of original grant of 6,964 unvested RSUs related to dividend shares. |
| 08/16/2021 | Date of original grant of 12,703 unvested RSUs related to dividend shares. |
| 08/12/2022 | Date of original grant of 27,643 unvested RSUs related to dividend shares. |
| 08/11/2023 | Date of original grant of 27,980 unvested RSUs related to dividend shares. |
| 06/14/2024 | Record date for the cash dividend. |
| 06/28/2024 | Transaction date: CEO received RSUs in connection with the cash dividend. |
| 07/02/2024 | Date of Form 4 filing. |
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