Form 4: Garrett Motion Inc. Director Daun Norman Acquires Deferred Stock Units

Director Daun Norman acquired 1,572 deferred stock units in Garrett Motion Inc. on July 1, 2024, which vest immediately and are payable in common stock upon a change in control or cessation of board service.

Summary

• On July 1, 2024, Daun Norman, a director of Garrett Motion Inc., acquired 1,572 deferred stock units.
• These units were granted under the company's 2021 Long-term Incentive Plan.
• The deferred stock units vest immediately upon grant.
• They are payable as common stock on the earlier of a change in control of the issuer or six months after the director's cessation of service on the Board of Directors.
• Following the transaction, Norman directly owns 72,118 shares of common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard executive compensation practices and aligns director interests with shareholders.

Positives

• The acquisition of deferred stock units by a director signals confidence in the company's future.
• The vesting terms incentivize the director to remain engaged with the company.

Future Outlook

The deferred stock units are payable as common stock upon a change in control of the issuer or six months after the director's cessation of service on the Board of Directors, indicating potential future equity dilution or transfer.

Industry Context

This type of equity compensation is common for directors and executives to align their interests with those of shareholders.

Comparison to Industry Standards

• Deferred stock units are a common form of executive compensation, similar to practices at companies like BorgWarner and Honeywell, where executives receive stock-based awards that vest over time or upon achieving certain milestones.
• The terms of Garrett Motion's 2021 Long-term Incentive Plan are likely comparable to those of similar plans at peer companies, designed to incentivize long-term performance and retention.

Stakeholder Impact

• Shareholders may view this as a positive incentive for the director to act in the company's best interest.
• Employees may see this as a sign of stability and commitment from the board.

Key Dates