Form 4: Goodyear Executive Margaret V. Snyder Reports Acquisition of Performance and Restricted Stock Units

Margaret V. Snyder, Vice President and Controller of Goodyear Tire & Rubber Co, reports the acquisition of performance share units and restricted stock units under the company's 2022 Performance Plan.

Summary

• On February 26, 2024, Margaret V. Snyder, Vice President and Controller of Goodyear Tire & Rubber Co, acquired 10,160 performance share units and 10,160 restricted stock units.
• The performance share units are contingently payable in common stock in February 2027, with the number of units paid depending on the attainment of certain performance goals over a 3-year period ending December 31, 2026.
• The number of units paid can range from 0% to 200% of the units reported, subject to adjustments based on the company's total shareholder return vs. a peer group.
• The restricted stock units will vest and convert into shares of common stock in 33% increments over three years, starting on March 1, 2025.

Sentiment

Score: 6

Explanation: Neutral sentiment as it's a standard disclosure of executive compensation. The value is contingent on future performance.

Positives

• The acquisition of performance share units aligns the executive's interests with the company's performance over the next three years.
• The vesting schedule of the restricted stock units encourages long-term retention of the executive.

Risks

• The actual value of the performance share units is contingent on the company's performance and shareholder return, which are subject to market risks and industry conditions.

Future Outlook

The performance share units are contingently payable in February 2027, based on performance goals achieved by December 31, 2026. The restricted stock units will vest over three years, starting March 1, 2025.

Industry Context

This filing is a routine disclosure of executive compensation in the form of equity grants, which is a common practice in publicly traded companies to align management's interests with those of shareholders.

Comparison to Industry Standards

• Equity-based compensation is a standard practice among publicly traded companies, including Goodyear's competitors such as Michelin and Bridgestone.
• The vesting schedules and performance metrics associated with these grants are generally aligned with industry norms for executive compensation.
• Companies like Michelin and Bridgestone also utilize performance-based equity awards to incentivize their executives.

Stakeholder Impact

• The equity grants align management's interests with shareholders, potentially driving long-term value creation.
• Employees may be indirectly impacted by the performance goals associated with the performance share units.

Key Dates