Form 4: Garrett Motion Inc. Director Acquires Shares Through Deferred Stock Units

Director Daniel A. Ninivaggi acquired 5,577 shares of Garrett Motion Inc. common stock through a grant of deferred stock units.

Summary

• Daniel A. Ninivaggi, a director at Garrett Motion Inc., acquired 5,577 shares of common stock on January 2, 2025.
• The shares were acquired through a grant of deferred stock units under the company's 2021 Long-term Incentive Plan.
• These deferred stock units were granted in lieu of cash compensation for his service as a non-employee director.
• The deferred stock units vest immediately upon grant but are payable as common stock at a later date.
• The payment will occur on the earlier of a change in control of the company or six months after Mr. Ninivaggi ceases to be a director.
• Following this transaction, Mr. Ninivaggi beneficially owns 110,486 shares of Garrett Motion Inc. common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction of deferred stock units to a director, which is generally a positive sign of alignment between management and shareholders. There is no indication of any negative sentiment.

Positives

• The grant of deferred stock units aligns the director's interests with those of the shareholders.
• The immediate vesting of the units shows confidence in the company's future.

Future Outlook

The deferred stock units will be converted to common stock upon a change in control of the company or six months after the director ceases to serve on the board.

Industry Context

This type of equity compensation is common for non-employee directors, aligning their interests with the long-term performance of the company.

Comparison to Industry Standards

• Many companies use deferred stock units as part of their compensation packages for non-employee directors.
• The vesting and payout terms are fairly standard, with payouts often tied to change of control or departure from the board.
• Companies like BorgWarner and Honeywell, which operate in similar industries, also use equity-based compensation for their directors.

Stakeholder Impact

• The transaction increases the director's stake in the company, aligning his interests with those of shareholders.
• The use of deferred stock units is a common practice and should not have a significant impact on other stakeholders.

Key Dates

Keywords

Garrett Motion Inc., Director, Daniel A. Ninivaggi, Deferred Stock Units, Share Acquisition, Long-term Incentive Plan, Beneficial Ownership, Non-employee Director