Form 4: Helios CFO Michael Connaway Awarded 6,500 RSUs

Helios Technologies' CFO, Michael Connaway, was granted 6,500 Restricted Stock Units, vesting over two years.

Summary

• Michael Connaway, Chief Financial Officer (CFO) of HELIOS TECHNOLOGIES, INC. (HLIO), was granted 6,500 Restricted Stock Units (RSUs).
• The grant date for these RSUs was October 27, 2025.
• Each RSU represents the right to receive one share of Common Stock upon vesting.
• The vesting schedule dictates that 50% of the awards will vest and convert into Common Stock on each of the first two anniversaries of the grant date, specifically October 27, 2026, and October 27, 2027.
• Following this transaction, Michael Connaway beneficially owns 6,500 derivative securities (RSUs) directly.

Sentiment

Score: 7

Explanation: The grant of RSUs to a key executive is generally a positive signal for corporate governance and executive alignment with shareholder interests, indicating a commitment to long-term performance. It is a routine compensation event, not directly indicative of operational performance.

Positives

• The grant of Restricted Stock Units aligns the CFO's long-term financial interests with those of the shareholders, incentivizing sustained company performance.
• This form of compensation is a standard practice to retain key executives and motivate them towards achieving strategic objectives.

Negatives

• The RSUs do not provide immediate liquidity or cash value to the CFO until they vest.
• There is a potential for minor future dilution of existing shares when the RSUs convert to common stock, although the amount is relatively small.

Risks

• The value of the RSUs is directly tied to the future market price of Helios Technologies' common stock, exposing the recipient to market volatility.
• The RSUs are subject to forfeiture if the reporting person's employment terminates before the vesting conditions are met, as per the terms of the grant.

Future Outlook

The future outlook for the granted RSUs is tied to the company's stock performance and the CFO's continued employment through the vesting dates of October 27, 2026, and October 27, 2027.

Industry Context

The grant of Restricted Stock Units to a Chief Financial Officer is a common and widely accepted practice in executive compensation across various industries. It serves as a long-term incentive, aligning executive interests with shareholder value creation over time.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a component of executive compensation is a prevalent practice among publicly traded companies, including those in the industrial technology sector where Helios Technologies operates.
• The vesting schedule of 50% on the first two anniversaries is a typical structure designed to encourage executive retention and long-term performance, comparable to similar grants observed at companies like Parker Hannifin or Eaton Corporation for their senior executives.

Stakeholder Impact

• Shareholders: The grant aligns the CFO's financial incentives with shareholder value creation, potentially leading to better long-term performance. There is a minor potential for future dilution upon vesting.
• Employees: This compensation structure may serve as a benchmark or incentive for other key employees, reinforcing a performance-oriented culture.
• Management: The CFO receives a significant long-term incentive, contingent on continued employment and company performance, enhancing retention.

Next Steps

• The first tranche of 50% of the Restricted Stock Units is scheduled to vest on October 27, 2026.
• The second tranche of 50% of the Restricted Stock Units is scheduled to vest on October 27, 2027.

Key Dates

Keywords

HLIO, Helios Technologies, Michael Connaway, Form 4, Restricted Stock Units, RSU, Insider Transaction, Executive Compensation, CFO