Form 4: Orion Energy Systems Executive Scott A. Green Reports Acquisition of Performance Shares and Restricted Stock

Scott A. Green, President of Orion Services Group, reports the acquisition of performance shares and restricted stock in Orion Energy Systems, Inc.

Summary

• On June 11, 2024, Scott A. Green, President of Orion Services Group, reported acquiring performance shares and restricted stock in Orion Energy Systems, Inc.
• Green acquired 235,321 performance shares at $0, increasing his holdings to 1,222,262 shares.
• He also acquired 156,881 restricted stock units at $0, decreasing his holdings to 986,941 shares.
• The performance shares vest subject to achieving certain performance goals by the end of fiscal year 2026.
• The restricted stock vests in three equal installments on June 11 of 2025, 2026, and 2027.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard executive compensation practices that align management interests with company performance. The vesting schedules and performance goals suggest a focus on long-term value creation.

Positives

• The acquisition of performance shares and restricted stock aligns the executive's interests with the company's long-term performance.
• The vesting schedules for both types of shares incentivize continued service and achievement of performance goals.

Future Outlook

The vesting of the performance shares is contingent upon the achievement of certain performance goals through fiscal year 2026, indicating a focus on long-term performance.

Industry Context

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

Comparison to Industry Standards

• Granting performance shares and restricted stock is a common practice among publicly traded companies to incentivize executives.
• Vesting schedules and performance goals are typically designed to align with long-term strategic objectives, similar to practices at companies like Acuity Brands and Cree Lighting.

Stakeholder Impact

• Shareholders may view the granting of performance shares and restricted stock positively, as it aligns executive compensation with company performance.
• Employees may see this as a positive sign, indicating that the company is investing in its leadership.

Key Dates