Form 4: Hecla Mining Executive Michael Clary Reports Significant Stock Transactions and New Performance Awards

Hecla Mining Company's Senior VP & CAO, Michael L. Clary, reported routine stock transactions including the vesting of restricted stock units, tax-related share withholding, and the award of new performance-based equity.

Summary

• Michael L. Clary, Senior VP & CAO of Hecla Mining Co/DE/ (HL), reported several transactions on June 23, 2025, related to his beneficial ownership.
• 28,767 shares of Common Stock were disposed of at a price of $5.82 per share to cover tax liability on previously awarded restricted stock units (RSUs) that vested.
• Mr. Clary 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 additional 16,271 shares were acquired indirectly through Mr. Clary's 401(k) Plan at a price of $0.
• Mr. Clary also received an award of 60,137 performance rights, representing a contingent right to receive Hecla Mining Company common stock valued between $350,000 (target) and $700,000 (maximum).
• These performance rights are tied to 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.
• Following these transactions, Mr. Clary beneficially owns 431,672 shares directly, which includes 159,746 shares held directly, 153,861 performance-based units, and 118,065 unvested restricted stock units.

Sentiment

Score: 6

Explanation: The document reflects routine executive compensation activities, which are generally positive as they align management incentives with shareholder interests. There are no unexpected negative or highly positive surprises.

Positives

• The award of new restricted stock units and performance rights aligns executive incentives with long-term shareholder value creation.
• Performance rights are directly tied to Total Shareholder Return (TSR) relative to peers, encouraging competitive performance.
• The continued accumulation of shares by a senior executive demonstrates ongoing commitment to the company's future.

Negatives

• A portion of vested shares (28,767) was withheld to cover tax liabilities, reducing the immediate direct shareholding.

Risks

• The value of the performance rights is contingent on Hecla Mining Company's Total Shareholder Return performance relative to its peers, meaning the actual number of shares received could be significantly less than the target if performance is poor.
• The value of all equity awards is subject to fluctuations in Hecla Mining Company's common stock price.

Future Outlook

The future outlook for Mr. Clary's compensation includes the vesting of new restricted stock units in 2026, 2027, and 2028, and the potential payout of performance rights based on Hecla Mining Company's Total Shareholder Return relative to peers over the period ending December 31, 2027.

Management Comments

• The transactions reflect the company's ongoing executive compensation strategy, which includes long-term equity incentives designed to align management interests with shareholder returns.

Industry Context

This Form 4 filing details routine executive compensation events, including the vesting of prior awards and the grant of new equity incentives. Such compensation structures, particularly those tied to performance metrics like Total Shareholder Return, are standard practice across the mining industry and publicly traded companies to incentivize long-term value creation and retain key talent.

Comparison to Industry Standards

• The use of restricted stock units (RSUs) and performance rights tied to Total Shareholder Return (TSR) is a common and widely accepted practice in executive compensation across the global mining sector and broader public markets.
• Many peer companies in the mining industry, such as Barrick Gold, Newmont, and Agnico Eagle Mines, utilize similar long-term incentive plans to align executive compensation with company performance and shareholder interests.
• The structure of the performance rights, with a target and maximum payout based on percentile rank among peers, is a standard mechanism to ensure competitive performance relative to the market.

Stakeholder Impact

• Shareholders: The equity awards, particularly performance rights, aim to align the interests of Mr. Clary with those of shareholders by tying a significant portion of his compensation to the company's stock performance and Total Shareholder Return.
• Employees: While not directly impacting all employees, executive compensation practices can influence overall company culture and compensation philosophy.

Next Steps

• Future vesting of 20,046 restricted stock units on June 21, 2026.
• Future 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 performance rights award, concluding December 31, 2027.
• Future vesting of 20,045 restricted stock units on June 21, 2028.

Key Dates

Keywords

Hecla Mining, HL, SEC Form 4, Insider Trading, Executive Compensation, Restricted Stock Units, Performance Rights, Beneficial Ownership, Stock Award, Total Shareholder Return, Mining Company