Form 4: Fresh Del Monte Produce Inc. Executive Receives Dividend Equivalent Units and Performance Stock Units

Marissa R. Tenazas, SVP, CHRO of Fresh Del Monte Produce Inc., received dividend equivalent units and performance stock units, including shares acquired through a dividend reinvestment plan.

Summary

• Marissa R. Tenazas, a Senior Vice President and Chief Human Resources Officer at Fresh Del Monte Produce Inc., received 2,143.465 dividend equivalent units (DEUs).
• These DEUs represent a contingent right to receive one ordinary share of FDP each and are subject to the same restrictions and vesting criteria as the underlying Restricted Stock Units (RSUs) and Performance Stock Units (PSUs).
• Ms. Tenazas also received 201.9511 performance stock units (PSUs) which convert to ordinary shares on a one-to-one basis.
• The PSUs were awarded on April 1, 2024, and are earned subject to meeting minimum performance criteria.
• Once earned, the PSUs vest in three equal annual installments on April 1, 2025, April 1, 2026, and April 1, 2027.
• Additionally, 35.457 ordinary shares were acquired through a dividend reinvestment plan, which is exempt under Rule 16a-11.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which are generally viewed positively as they align executive interests with shareholder value. There are no indications of negative issues.

Positives

• The dividend reinvestment plan allows for the accumulation of additional shares.
• The vesting schedule of the PSUs provides a long-term incentive for the executive.

Risks

• The performance stock units are subject to meeting minimum performance criteria, which may not be achieved.
• The value of the shares is subject to market fluctuations.

Future Outlook

The performance stock units will vest over the next three years, subject to meeting performance criteria.

Industry Context

This type of equity-based compensation is common for executives in publicly traded companies to align their interests with those of shareholders.

Comparison to Industry Standards

• Equity-based compensation, including stock options, restricted stock units, and performance stock units, is a standard practice among publicly traded companies like Fresh Del Monte Produce.
• Companies such as Dole plc and Chiquita Brands International also utilize similar compensation structures to incentivize their executives.
• The vesting schedules and performance criteria associated with these grants are typically designed to align executive performance with long-term shareholder value creation, which is a common industry practice.
• The use of dividend equivalent units is also a common practice to ensure that executives receive the same benefits as shareholders during the vesting period.

Stakeholder Impact

• Shareholders may view this as a positive sign that management's interests are aligned with theirs.
• Employees may see this as a positive sign of the company's commitment to its leadership.

Next Steps

• The performance stock units will vest in three equal annual installments on April 1, 2025, April 1, 2026, and April 1, 2027.

Key Dates

Keywords

Dividend Equivalent Units, Performance Stock Units, Share Ownership, Executive Compensation, Dividend Reinvestment, Vesting, FDP, Fresh Del Monte Produce Inc.