Form 4: Kennametal Inc. Vice President Reilly Acquires Performance Stock Units

Carlonda R. Reilly, Vice President of Kennametal Inc., reports the acquisition of performance stock units based on the achievement of performance metrics.

Summary

• On July 29, 2024, Carlonda R. Reilly, Vice President of Kennametal Inc., acquired performance stock units.
• These units were granted under the Kennametal Inc. 2020 Stock and Incentive Plan.
• The acquisitions are related to the achievement of performance metrics for the third tranche of the 2021 Performance Unit Award (837 units), the second tranche of the 2022 Performance Unit Award (1,390 units), and the first tranche of the 2023 Performance Unit Award (1,605 units).
• The Compensation and Human Capital Committee approved an adjusted ROIC payout multiple of 67.3% for each of these tranches on July 29, 2024.
• Vesting and distribution of these shares are contingent upon Reilly's continued employment with the company through August 15, 2024, August 15, 2025, and August 15, 2026, respectively.

Sentiment

Score: 6

Explanation: The sentiment is neutral as it reflects a standard executive compensation disclosure. The vesting of performance stock units suggests the company is meeting some performance targets, but it's not overwhelmingly positive or negative.

Positives

• The vesting of performance stock units suggests that the company is meeting certain performance targets.
• The adjusted ROIC payout multiple of 67.3% indicates a level of achievement against the set goals.

Risks

• The actual distribution of shares is contingent upon the reporting person's continued employment with the company, creating a potential risk if employment is terminated before the vesting dates.

Future Outlook

Vesting and distribution of the performance stock units are contingent upon the reporting person's continued employment with the company through August 15, 2024, August 15, 2025, and August 15, 2026.

Industry Context

This filing is a routine disclosure related to executive compensation and is typical for companies with stock-based incentive plans. It reflects the company's approach to incentivizing executives based on performance metrics.

Comparison to Industry Standards

• Stock-based compensation is a common practice among publicly traded companies to align executive interests with shareholder value.
• Companies like Sandvik, and Stanley Black & Decker also utilize performance-based equity awards as part of their executive compensation packages.
• The specific ROIC payout multiple of 67.3% would need to be compared against industry benchmarks and Kennametal's historical performance to assess its relative strength.

Stakeholder Impact

• Shareholders may view the vesting of performance stock units as a positive sign, indicating that the company is achieving its performance goals.
• Employees may be motivated by the potential for similar stock-based compensation.

Key Dates