Form 4: Parsons Corp CEO Carey A. Smith Receives 34,873 Restricted Stock Units

Carey A. Smith, President & CEO of Parsons Corporation, was granted 34,873 restricted stock units on February 26, 2024, which will vest in three equal annual installments starting March 10, 2025.

Summary

• On February 26, 2024, Carey A. Smith, the President & CEO of Parsons Corporation, received an award of 34,873 restricted stock units (RSUs).
• These RSUs represent a contingent right to receive one share of Parsons Corporation common stock per unit.
• The RSUs will vest in three equal annual installments, commencing on March 10, 2025.
• Following this transaction, Smith directly owns 317,742 shares of Parsons Corporation common stock and indirectly owns 4,723.9866 shares through an ESOP.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. The sentiment is neutral to positive.

Positives

• The grant of RSUs aligns the CEO's interests with those of the shareholders, incentivizing long-term value creation.
• The vesting schedule encourages continued service and commitment from the CEO.

Future Outlook

The vesting of the RSUs is contingent upon continued service, suggesting an expectation of Smith's continued leadership at Parsons Corporation.

Industry Context

Granting stock-based compensation is a common practice in publicly traded companies to incentivize executives and align their interests with shareholders. The specific amount and vesting schedule are determined by the company's compensation policies and performance goals.

Comparison to Industry Standards

• Executive compensation packages, including stock options and restricted stock units, are common in the engineering and construction industry.
• Companies like AECOM, Jacobs Engineering Group, and Fluor Corporation also utilize similar equity-based compensation to incentivize their top executives.
• The size of the RSU grant is likely determined based on Parsons Corporation's market capitalization, revenue, and the CEO's performance.

Stakeholder Impact

• Shareholders may view the RSU grant positively as it aligns the CEO's interests with the company's long-term success.
• Employees may see the grant as a sign of confidence in the company's leadership and future prospects.

Key Dates