4/A: Hecla Mining Executive David Sienko Reports Share Transactions and New Equity Awards

Hecla Mining Company's Senior Vice President, General Counsel, and Secretary, David C. Sienko, reported routine share transactions including tax-related withholdings and new equity awards, increasing his total beneficial ownership.

Summary

• David C. Sienko, Sr. VP, GC & Secretary, reported transactions on June 23, 2025.
• 13,768 shares of Common Stock were withheld by Hecla Mining Company at a price of $5.82 per share to cover tax liabilities on restricted stock units that vested on June 23, 2025. These vested units originated from awards granted on June 21, 2022, June 21, 2023, June 21, 2024, and August 20, 2024.
• Mr. Sienko was awarded 60,137 new restricted stock units (RSUs) at a price of $5.82 per share, which will vest in three equal tranches on June 21, 2026, June 21, 2027, and June 21, 2028.
• An estimated 15,258 shares were acquired into Mr. Sienko's 401(k) account under the Hecla Mining Company Capital Accumulation Plan.
• Mr. Sienko also received 60,137 performance rights, representing a contingent right to receive between $350,000 and $700,000 worth of Hecla Mining Company common stock based on the company's Total Shareholder Return (TSR) performance relative to peers over the period from January 1, 2025, to December 31, 2027.
• Following these transactions, Mr. Sienko's total beneficial ownership stands at 1,113,923 shares, comprising 845,306 directly held shares, 149,589 performance-based units, and 119,028 unvested restricted stock units.

Sentiment

Score: 6

Explanation: The document details routine executive compensation transactions, including new equity awards that align management's interests with long-term shareholder value. While not directly indicative of operational performance, it reflects standard corporate governance and incentive practices.

Positives

• The award of 60,137 new restricted stock units aligns Mr. Sienko's interests with long-term shareholder value creation.
• The grant of performance rights, contingent on Total Shareholder Return (TSR) performance relative to peers, incentivizes strong company performance and executive accountability.
• The increase in beneficial ownership, including direct shares, performance-based units, and unvested restricted stock units, demonstrates continued executive commitment to the company.

Future Outlook

The company has granted performance rights to Mr. Sienko, which are contingent on Hecla Mining Company's Total Shareholder Return (TSR) performance relative to its peers over a three-year period from January 1, 2025, to December 31, 2027. This aligns executive incentives with future shareholder returns.

Industry Context

This filing reflects a standard executive compensation practice within publicly traded companies, particularly in the mining sector, where long-term incentives like restricted stock units and performance rights are used to align executive interests with company performance and shareholder value over multi-year periods. The use of Total Shareholder Return (TSR) relative to peers is a common metric for performance-based awards in resource industries.

Comparison to Industry Standards

• The use of restricted stock units (RSUs) with multi-year vesting schedules (e.g., 3-year vesting for the new award) is a common practice in executive compensation across various industries, including mining, to promote long-term retention and alignment.
• Performance-based equity awards tied to Total Shareholder Return (TSR) relative to a peer group are a widely adopted standard for executive incentives in the S&P 500 and similar large-cap companies, including those in the metals and mining sector. This structure directly links executive payouts to the company's stock performance compared to its competitors, such as Barrick Gold Corporation, Newmont Corporation, or Agnico Eagle Mines Limited, though specific peers are not named in this filing.
• The withholding of shares to cover tax liabilities upon the vesting of equity awards is a standard and expected procedure for executives receiving equity compensation.

Related Party Transactions

• The transactions involve the company (Hecla Mining Company) and a senior executive (David C. Sienko), which are by definition related parties. These transactions are part of a standard executive compensation plan.

Stakeholder Impact

• Shareholders: The equity awards (RSUs and performance rights) are designed to align executive incentives with shareholder interests by linking compensation to company performance and stock value. The withholding of shares for tax purposes is a routine event that slightly reduces the executive's direct share count but is offset by new awards.
• Employees: The document specifically details compensation for a senior executive and does not directly impact the broader employee base, though it reflects the company's overall compensation philosophy.

Next Steps

• Vesting of 20,046 restricted stock units on June 21, 2026.
• Vesting of 20,046 restricted stock units on June 21, 2027.
• Evaluation of Hecla Mining Company's Total Shareholder Return performance relative to peers for the period January 1, 2025, to December 31, 2027, to determine the final payout of performance rights.
• Vesting of 20,045 restricted stock units on June 21, 2028.

Key Dates

Keywords

Hecla Mining, HL, SEC Form 4/A, Insider Transaction, David C. Sienko, Restricted Stock Units, Performance Rights, Executive Compensation, Share Ownership, Mining Industry