Form 4: Helios Technologies Executive Granted Stock Options and Restricted Stock Units

Matteo Arduini, President of Hydraulics, EMEA at Helios Technologies, received stock options and restricted stock units (RSUs) on February 27, 2025.

Summary

• Matteo Arduini, President of Hydraulics, EMEA at Helios Technologies, was granted restricted stock units (RSUs) and performance stock options on February 27, 2025.
• The RSU grant consists of 5,077 units, each representing the right to receive one share of Helios Technologies common stock upon vesting.
• The RSUs vest in three equal installments on January 3, 2026, January 3, 2027, and January 3, 2028.
• Arduini also received performance stock options for 10,870 shares with an exercise price of $39.80.
• The number of performance stock options that vest is contingent upon the achievement of pre-established performance metrics over a three-year period from the beginning of fiscal year 2025 to the end of fiscal year 2027, subject to continuous employment through March 15, 2028.
• The stock options expire 10 years from the grant date.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating a positive alignment of interests between management and shareholders. The performance-based component adds a layer of incentive for achieving company goals.

Positives

• The grant of RSUs and performance stock options aligns the executive's interests with those of the shareholders.
• The vesting schedule for the RSUs encourages long-term retention.
• The performance-based vesting of the stock options incentivizes the achievement of company goals.

Risks

• The value of the RSUs and stock options is dependent on the future performance of Helios Technologies' stock.
• The performance stock options may not vest if the company does not achieve the pre-established performance metrics.
• Executive may leave the company before the vesting date.

Future Outlook

The vesting of the RSUs and performance stock options is contingent upon continued employment and, in the case of the options, the achievement of pre-established performance metrics over a three-year period.

Industry Context

Granting stock options and RSUs is a common practice in publicly traded companies to incentivize and retain key executives. The specific terms of the grants, such as the vesting schedule and performance metrics, are tailored to the company's specific circumstances and goals.

Comparison to Industry Standards

• Executive compensation packages, including stock options and RSUs, are common in publicly traded companies like Helios Technologies.
• Companies such as Parker-Hannifin (PH), Eaton Corporation (ETN), and Flowserve (FLS) also utilize similar equity-based compensation to align executive interests with shareholder value.
• The vesting schedules and performance metrics associated with these grants are typically benchmarked against industry peers to ensure competitiveness and effectiveness.

Stakeholder Impact

• Shareholders may view the grants positively as they incentivize management to improve company performance.
• Employees may see the grants as a sign of the company's commitment to its leadership.
• The grants have no immediate impact on customers, suppliers, or creditors.

Key Dates