Form 4: Garrett Motion Director Paul Camuti Granted Deferred Stock Units for Service

Garrett Motion Inc. Director Paul A. Camuti received 1,467 deferred stock units as compensation for his non-employee director service, which vested immediately.

Summary

• Paul A. Camuti, a Director of Garrett Motion Inc. (GTX), acquired 1,467 shares of common stock on July 1, 2025.
• These shares represent a grant of deferred stock units under the Garrett Motion Inc. 2021 Long-term Incentive Plan.
• The grant is in lieu of cash compensation for his service as a non-employee director.
• The deferred stock units vested immediately upon grant.
• Following this transaction, Mr. Camuti beneficially owns 38,471 shares of Garrett Motion Inc. common stock.
• The units are payable as common stock on the earlier of a Change in Control of the Issuer or the six-month anniversary of Mr. Camuti's cessation of service on the Board of Directors.

Sentiment

Score: 7

Explanation: The transaction represents a routine compensation grant to a director, aligning their interests with shareholders. This is generally viewed positively as a standard corporate governance practice, indicating stability and adherence to established compensation policies.

Positives

• The grant of deferred stock units aligns the director's interests with those of shareholders, as the value of his compensation is tied to the company's stock performance.
• Immediate vesting of the deferred stock units provides certainty of ownership for the director.
• Utilizing equity for non-employee director compensation is a common and often preferred practice in corporate governance, promoting long-term commitment.

Future Outlook

The deferred stock units granted to Director Paul A. Camuti are payable as common stock on the earlier of a Change in Control of Garrett Motion Inc. or the six-month anniversary of his cessation of service on the Board of Directors.

Industry Context

The grant of deferred stock units to non-employee directors is a standard practice across various industries, particularly in publicly traded companies, to compensate board members and align their financial interests with long-term shareholder value.

Comparison to Industry Standards

• Compensating non-employee directors with equity, such as deferred stock units, is a widely adopted practice among S&P 500 companies and other publicly traded entities, including peers in the automotive and industrial sectors like BorgWarner Inc. or Cummins Inc., as it fosters alignment with shareholder interests.
• The immediate vesting of these units is also a common feature in director compensation plans, providing immediate ownership and reducing administrative complexities compared to multi-year vesting schedules often seen with executive performance awards.
• The specific triggers for payment (Change in Control or cessation of service) are typical provisions designed to manage liquidity and tax implications for directors.

Corporate Governance

Related Party Transactions

• The acquisition of 1,467 deferred stock units by Paul A. Camuti, a Director of Garrett Motion Inc., constitutes a related party transaction as it involves compensation provided by the company to a member of its board.

Stakeholder Impact

• Shareholders: The equity grant aligns the director's financial interests with long-term shareholder value, potentially encouraging decisions that benefit stock performance.
• Employees: No direct impact on employees is indicated by this specific filing.
• Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated by this specific filing.

Next Steps

• Payment of the deferred stock units as common stock upon the earlier of a Change in Control of Garrett Motion Inc. or six months after Paul A. Camuti ceases service on the Board of Directors.

Key Dates

Keywords

Garrett Motion, GTX, SEC Form 4, Insider Transaction, Director Compensation, Equity Grant, Deferred Stock Units, Corporate Governance, Executive Compensation, Beneficial Ownership