Form 4: Fresh Del Monte Produce Inc. Executive Acquires Dividend Equivalent Units

Alexandre Apparecido, VP of Global Internal Audit at Fresh Del Monte Produce Inc., reports the acquisition of dividend equivalent units related to restricted stock units and performance stock units.

Summary

• On June 7, 2024, Alexandre Apparecido, VP of Global Internal Audit at Fresh Del Monte Produce Inc., acquired 115.7439 dividend equivalent units (DEUs).
• These DEUs are linked to outstanding restricted stock units (RSUs) and performance stock units (PSUs) previously granted to Apparecido.
• The DEUs accrue at the same rate and time as dividends paid to ordinary shareholders and are subject to the same restrictions and vesting conditions as the underlying RSUs and PSUs.
• Apparecido directly owns 500 restricted stock units awarded on March 30, 2021, vesting in five equal annual installments with the remaining vesting occurring on March 30, 2025.
• He also owns 502 restricted stock units awarded on June 15, 2022, vesting in three equal annual installments with the remaining vesting occurring on March 2, 2025.
• Additionally, Apparecido holds 1,263 restricted stock units awarded on March 2, 2023, vesting in three equal annual installments with remaining vestings on March 2, 2025, and March 2, 2026.
• Apparecido owns 1,909 performance stock units awarded on March 1, 2021, which vested in three equal annual installments after meeting 91% of the minimum performance criteria.
• He also owns 769.8886 performance stock units awarded on June 15, 2022, vesting in three equal annual installments with the remaining vesting occurring on March 2, 2025, after meeting 97.3% of the minimum performance criteria.
• Finally, Apparecido holds 5,170 performance stock units awarded on March 1, 2024, which vest in three equal annual installments on March 1, 2025, March 1, 2026, and March 1, 2027, subject to meeting minimum performance criteria.

Sentiment

Score: 7

Explanation: The document is a routine regulatory filing related to executive compensation. It doesn't contain any particularly positive or negative news, but the continued equity investment in the executive suggests confidence in the company's future.

Positives

• The acquisition of dividend equivalent units reflects continued investment in the company by a key executive.
• The vesting schedules of the RSUs and PSUs incentivize long-term performance and retention of the executive.

Future Outlook

The document outlines the vesting schedules for previously awarded RSUs and PSUs, indicating future equity compensation payouts contingent on continued employment and, in the case of PSUs, the achievement of performance criteria.

Industry Context

Executive compensation through equity grants is a common practice in publicly traded companies to align management's interests with those of shareholders. The vesting schedules and performance criteria are designed to incentivize long-term value creation.

Comparison to Industry Standards

• Equity compensation is a standard practice among publicly listed companies, including Fresh Del Monte's competitors such as Dole Food Company and Chiquita Brands International.
• These companies often use a mix of restricted stock units and performance-based stock options to incentivize executives.
• The vesting schedules and performance metrics vary, but the general goal is to align executive compensation with shareholder value creation.

Stakeholder Impact

• The vesting of RSUs and PSUs could potentially dilute existing shareholders' equity over time.
• The performance-based vesting of PSUs aligns executive compensation with company performance, which benefits shareholders if performance targets are met.

Key Dates