Form 4: Goodyear Executive Gregory Boucharlat Reports Acquisition of Performance Share Units and Restricted Stock Units

Goodyear Tire & Rubber Co's Senior VP, Gregory Boucharlat, reports the acquisition of performance share units and restricted stock units under the company's 2022 Performance Plan.

Summary

• Gregory Boucharlat, Senior VP, Global Commercial at Goodyear Tire & Rubber Co, filed a Form 4.
• The filing reports the acquisition of 19,021 Performance Share Units and 9,510 Restricted Stock Units on May 15, 2025, under the 2022 Performance Plan.
• The Performance Share Units are contingently payable in shares of common stock in February 2028, with the number of units paid ranging from 0% to 200% based on performance goals over a three-year period ending December 31, 2027.
• The number of units is also subject to an increase or decrease of up to 20% based on the company's total shareholder return versus a peer group over the same three-year period.
• The Restricted Stock Units will vest and convert into shares of common stock in 33% increments over three years, starting May 15, 2026.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, aligning management interests with shareholder value. The sentiment is neutral to slightly positive as it indicates continued investment in the company's leadership.

Positives

• The grants of Performance Share Units and Restricted Stock Units align executive compensation with company performance and shareholder value.

Risks

• The actual value of the Performance Share Units is uncertain, as it depends on the company's performance and shareholder return over the next few years.
• The vesting of the Restricted Stock Units is contingent on continued employment.

Future Outlook

The actual number of Performance Share Units paid out will depend on the company's performance against specific goals and its total shareholder return compared to a peer group over a three-year period ending December 31, 2027.

Industry Context

Equity compensation is a common practice in the tire and rubber industry to incentivize executives and align their interests with those of shareholders. Performance-based units are often used to drive specific strategic goals.

Comparison to Industry Standards

• Companies like Michelin and Bridgestone also utilize equity-based compensation, often with a mix of stock options, restricted stock, and performance-based units.
• The vesting schedules and performance metrics used by Goodyear appear to be in line with industry norms, focusing on long-term value creation and shareholder returns.

Stakeholder Impact

• Shareholders: The equity grants aim to align executive interests with shareholder value creation.
• Employees: The grants may have a positive impact on employee morale by demonstrating the company's commitment to its leadership.

Key Dates

Keywords

Form 4, Goodyear Tire & Rubber Co, Gregory Boucharlat, Performance Share Units, Restricted Stock Units, Equity Compensation, Insider Transaction