Form 4: Helix Energy Solutions Executive Exercises Performance Share Units, Disposes of Shares for Tax Obligations

Kenneth Neikirk, EVP, General Counsel & Secretary of Helix Energy Solutions Group, exercised performance share units and disposed of shares to cover tax obligations on February 27, 2025.

Summary

• Kenneth Neikirk, an executive at Helix Energy Solutions Group, exercised 128,205 performance share units (PSUs) on February 27, 2025.
• These PSUs, granted on January 4, 2022, converted into shares of common stock.
• The number of shares received was determined by the company's total shareholder return and free cash flow (FCF) performance over a three-year period.
• The company's cumulative FCF exceeded the highest benchmark, resulting in a 200% payout for the FCF portion of the PSUs.
• Neikirk also disposed of 50,449 shares at $9.32 to satisfy tax obligations related to the vesting of the PSUs, retaining 260,061 shares.
• After the transaction, Neikirk directly owns 260,061 shares of Helix Energy Solutions Group.

Sentiment

Score: 6

Explanation: The document itself is neutral, simply reporting a transaction. The fact that the FCF target was exceeded is a positive, but the document is primarily informational.

Positives

• The company's strong free cash flow performance resulted in a 200% payout for the FCF portion of the performance share units, indicating positive financial performance.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership. It reflects the vesting of performance-based equity awards, which are common in the energy industry to incentivize executives to achieve specific financial and operational goals.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded companies, particularly in the energy sector.
• Companies like Schlumberger, Halliburton, and Baker Hughes also utilize performance share units and other equity-based incentives to align executive compensation with shareholder value creation.
• The specific metrics used (total shareholder return and free cash flow) are also common performance indicators in the industry.
• The 200% payout for the FCF portion suggests that Helix Energy Solutions Group exceeded its internal targets for free cash flow generation during the performance period.

Stakeholder Impact

• The vesting of performance share units and subsequent sale of shares could have a minor impact on shareholders due to the increased number of shares in the market.
• The positive FCF performance, which triggered the vesting, is generally beneficial for shareholders.

Key Dates