Form 4: Kinetik Holdings Executive Receives Stock Award and Pays Taxes Through Share Withholding

A Kinetik Holdings executive received a stock award in lieu of cash and had shares withheld to cover tax obligations.

Summary

• Matthew Wall, an executive at Kinetik Holdings, received 7,531 shares of Class A Common Stock as part of his annual incentive award for the 2024 fiscal year.
• These shares were granted in lieu of a cash payment.
• Additionally, 2,964 shares were withheld by the company to cover Mr. Wall's tax liabilities related to the incentive award.
• Mr. Wall also received 885 dividend equivalent shares related to his Performance Share Units (PSUs).
• These dividend equivalent shares will be paid out in Class A Common Stock when the underlying PSUs vest.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which are generally viewed positively as they align executive interests with shareholder value. There are no significant negative implications.

Positives

• The executive received a stock award, aligning his interests with shareholders.
• The dividend equivalent shares will increase the executive's holdings as the company performs well.

Negatives

• The company withheld shares to cover tax obligations, reducing the net amount of shares received by the executive.

Risks

• The value of the stock award is subject to market fluctuations.
• The tax liability could be higher or lower than the value of the shares withheld.

Management Comments

• The award was granted in lieu of cash settlement of the annual incentive award earned by the Reporting Person for the 2024 fiscal year.

Industry Context

This type of stock-based compensation is common in publicly traded companies to align executive interests with shareholder value.

Comparison to Industry Standards

• Stock awards and share withholding for taxes are standard practices in executive compensation packages across various industries.
• Many companies use a mix of cash and equity to incentivize executives, with the equity component often vesting over time to encourage long-term performance.
• The specific terms of the award, such as the vesting schedule and performance metrics, would need to be compared to similar companies to assess its competitiveness.

Stakeholder Impact

• Shareholders may view the stock award positively as it aligns executive interests with company performance.
• The tax withholding has no direct impact on other stakeholders.

Key Dates

Keywords

Kinetik Holdings, stock award, executive compensation, Form 4, share withholding, performance share units, dividend equivalents