Form 4: Garrett Motion Director Robert Shanks Receives Significant RSU Grant

Garrett Motion Inc. Director Robert L. Shanks was granted 13,417 restricted stock units, increasing his beneficial ownership to 81,198 shares, as part of the company's 2021 Long-term Incentive Plan.

Summary

• Robert L. Shanks, a Director of Garrett Motion Inc. (GTX), was granted 13,417 shares of common stock in the form of restricted stock units (RSUs).
• This grant was made on May 22, 2025, under the Garrett Motion Inc. 2021 Long-term Incentive Plan.
• Following this transaction, Mr. Shanks' direct beneficial ownership of Garrett Motion common stock increased to 81,198 shares.
• The RSUs are set to vest in full on the earlier of the one-year anniversary of the grant date or the next annual meeting of the Issuer's stockholders, contingent upon Mr. Shanks' continued service and certain separation conditions.

Sentiment

Score: 7

Explanation: The grant of restricted stock units to a director is generally a positive event as it aligns management's interests with shareholders. It's a standard compensation practice and doesn't indicate any immediate negative financial implications for the company, though it does represent a minor future dilution.

Positives

• The grant of 13,417 restricted stock units to Director Robert L. Shanks aligns his interests with those of shareholders, as the value of the grant is tied to the company's stock performance.
• An increase in insider ownership, even through grants, can signal confidence in the company's future prospects.
• The grant is part of a pre-existing 2021 Long-term Incentive Plan, indicating a structured approach to executive and director compensation.

Negatives

• The issuance of new restricted stock units could lead to a minor dilutive effect on existing shareholders upon vesting, although this is a standard component of equity compensation plans.

Risks

• The vesting of the restricted stock units is subject to the reporting person's continued service, meaning the benefit is contingent on ongoing employment or board membership.
• Vesting is also subject to "certain separations from service," which could imply conditions under which the RSUs might not fully vest or could be forfeited.

Future Outlook

The restricted stock units granted to Robert L. Shanks are scheduled to vest in full on the earlier of the one-year anniversary of the grant date (May 22, 2026) or the next annual meeting of Garrett Motion Inc. stockholders, provided his continued service.

Management Comments

• "Represents a grant of restricted stock units under the Garrett Motion Inc. 2021 Long-term Incentive Plan."
• "The restricted stock units vest in full on the earlier of the one-year anniversary of the grant date or the next annual meeting of the Issuer's stockholders, subject to the reporting person's continued service and in connection with certain separations from service."

Industry Context

This Form 4 filing details an insider transaction, specifically an equity grant to a director, which is a common practice across industries for executive and board member compensation. It does not provide information relevant to broader industry trends or competitive dynamics within the automotive technology or turbocharger manufacturing sectors where Garrett Motion operates.

Corporate Governance

Related Party Transactions

• The grant of 13,417 restricted stock units to Robert L. Shanks, a director of Garrett Motion Inc., constitutes a related party transaction as it involves compensation from the company to a member of its board.

Stakeholder Impact

• Shareholders: The grant aligns the director's interests with shareholders, potentially encouraging decisions that enhance stock value. However, it also represents a minor future dilution upon vesting.
• Employees: No direct impact mentioned for general employees.
• Customers: No direct impact.
• Suppliers: No direct impact.
• Creditors: No direct impact.

Next Steps

• The restricted stock units granted to Robert L. Shanks are expected to vest on the earlier of May 22, 2026, or the date of the next annual meeting of stockholders.

Key Dates

Keywords

Garrett Motion Inc., GTX, Robert L. Shanks, Restricted Stock Units, RSU, Insider Ownership, Director Compensation, Equity Grant, SEC Form 4, Long-term Incentive Plan