4/A: Power Solutions International CEO Exercises Stock Appreciation Rights for Nearly $1 Million in Cash

Power Solutions International CEO Constantine Xykis exercised 23,333 stock appreciation rights, settling them in cash for a gain of approximately $918,000, as disclosed in an amended SEC Form 4 filing.

Summary

• Constantine Xykis, CEO of Power Solutions International, Inc. (PSIX), filed an amended Form 4 (Form 4/A) to correct the transaction date to May 30, 2025, from the originally reported date.
• The filing details the exercise of a total of 23,333 Stock Appreciation Rights (SARs) in two separate transactions on May 30, 2025: 16,663 SARs and 6,670 SARs.
• These SARs were granted with an exercise price of $2.99 per right.
• The SARs were settled in cash, with the settlement value based on an implied market price of $42.37 per share.
• The total cash gain realized by Mr. Xykis from these exercises amounts to approximately $918,397.54 (calculated as 23,333 SARs multiplied by the difference between the settlement price of $42.37 and the exercise price of $2.99).
• Following these transactions, Mr. Xykis's direct beneficial ownership of common stock in Power Solutions International, Inc. stands at 33,859 shares.

Sentiment

Score: 7

Explanation: The sentiment is positive for the reporting individual due to a significant cash gain from the exercise of SARs, reflecting a profitable outcome for the CEO. For the company, it's a standard executive compensation event, neither inherently positive nor negative for operations, but the underlying stock appreciation that enabled the profit is positive.

Positives

• The CEO, Constantine Xykis, realized a substantial cash gain of approximately $918,397.54 from the exercise and cash settlement of his Stock Appreciation Rights.
• The SARs were settled at an implied market price of $42.37, significantly higher than their exercise price of $2.99, indicating a strong appreciation in the company's stock value since the SARs were granted.

Negatives

• The SARs were settled in cash rather than shares, meaning the CEO did not increase his direct equity ownership in the company through these exercises, which some investors might prefer for stronger alignment.
• The disposition of common stock (representing the cash settlement of SARs) at $42.37 per share could be perceived as the CEO taking profits, which might not always be viewed positively by investors seeking increased insider alignment through share ownership.

Future Outlook

This Form 4/A filing is a historical report of insider transactions and does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Management Comments

• "The reporting person exercised 16,663 stock appreciation rights ('SARs') pursuant to a Stock Appreciation Rights Agreement dated April 25, 2023. Such SARs were settled in cash."
• "The reporting person exercised 6,670 SARs pursuant to a Stock Appreciation Rights Agreement dated April 25, 2023. Such SARs were settled in cash."
• "This amendment is being filed to correct the date of the events being reported."

Industry Context

This filing details an individual executive's compensation-related transactions and does not provide broader industry context or trends. It reflects an executive's personal financial activity related to their equity awards.

Comparison to Industry Standards

• This document reports on specific insider transactions related to executive compensation. Direct comparisons to industry standards for executive compensation structures or specific transaction outcomes would require detailed analysis of peer company compensation plans and stock performance, which is beyond the scope of this filing.
• However, the exercise of SARs at a significant profit, as seen here, is a common outcome when a company's stock price has appreciated substantially, allowing executives to realize value from their equity awards.

Related Party Transactions

• The exercise and cash settlement of Stock Appreciation Rights by the CEO is a transaction between the company and an executive, which falls under the definition of a related-party transaction in the context of executive compensation.

Stakeholder Impact

• Shareholders: The cash settlement of SARs means no new shares were issued, thus avoiding dilution. However, it also means the CEO did not increase his direct equity stake, which some investors might prefer for stronger alignment. The significant profit for the CEO could be viewed positively as a reward for performance, or neutrally as a standard compensation event.
• Employees: No direct impact on employees is mentioned in this filing.
• Customers: No direct impact on customers is mentioned in this filing.
• Suppliers: No direct impact on suppliers is mentioned in this filing.
• Creditors: No direct impact on creditors is mentioned in this filing.

Key Dates

Keywords

Stock Appreciation Rights, SARs, Insider Trading, SEC Form 4, Constantine Xykis, POWER SOLUTIONS INTERNATIONAL INC, PSIX, CEO, Cash Settlement, Executive Compensation