Form 4: Limbach Holdings Executive Jay Sharp Reports Stock Award Vesting and Tax Withholding

Jay Sharp, President of Limbach Holdings, reports the vesting of performance-based restricted stock units and subsequent tax withholding.

Summary

• On March 13, 2024, Jay Sharp, President of Limbach Holdings, Inc., acquired 21,491 shares of common stock due to the vesting of performance-based restricted stock units (RSUs).
• The vesting was based on the achievement of pre-established performance goals at above-target levels for the period from January 1, 2021, to December 31, 2023.
• Simultaneously, 9,349 shares were withheld by the company to satisfy tax withholding requirements at a price of $49.76.
• Following these transactions, Sharp directly owns 61,549 shares of Limbach Holdings, Inc.
• Sharp also holds awards of restricted stock units (RSUs) granted on January 1, 2022, January 4, 2023 and January 17, 2023, respectively, which are subject to service-based vesting conditions.
• These awards vest in the aggregate, in the amount of 5,495 shares on January 1, 2025 and 3,194 shares on January 1, 2026.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The vesting of performance-based RSUs suggests the company met or exceeded performance targets, which is a positive indicator. However, the tax withholding is a neutral event.

Positives

• The vesting of performance-based RSUs suggests that the company achieved above-target performance goals during the specified period.

Future Outlook

The reporting person holds additional service-based RSUs vesting on January 1, 2025 and January 1, 2026, and performance-based RSUs for which the Compensation Committee has not yet determined the achievements of the applicable performance goals.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies. It provides transparency into the alignment of management's interests with those of shareholders.

Comparison to Industry Standards

• Executive compensation packages including performance-based RSUs are common in the construction and engineering industry to incentivize performance.
• Companies like EMCOR Group and Comfort Systems USA also utilize similar equity-based compensation plans for their executives.
• The vesting schedules and performance metrics are typically aligned with the company's strategic goals and industry benchmarks.

Stakeholder Impact

• The vesting of RSUs aligns management's interests with shareholders, potentially driving increased company performance.
• The tax withholding has no direct impact on stakeholders.

Next Steps

• The Compensation Committee will determine the achievements of the applicable performance goals for any performance-based RSUs, and these will be reported on a Form 4 within two business days of the date of such determination.

Key Dates