Form 4: Power Solutions International CEO Exercises Stock Appreciation Rights, Receives Cash Settlement

Power Solutions International CEO Constantine Xykis exercised 14,996 stock appreciation rights, resulting in a cash settlement and a reduction in his direct common stock holdings.

Summary

• Constantine Xykis, CEO of Power Solutions International, Inc. (PSIX), exercised 14,996 Stock Appreciation Rights (SARs) on July 18, 2025.
• The SARs had an exercise price of $2.99 per right.
• These SARs were settled in cash, indicating the reporting person received the appreciation value in cash rather than shares.
• Concurrently, the filing reported a disposition of 14,996 shares of Common Stock at a price of $90 per share, which aligns with the cash settlement value derived from the SARs.
• Following these transactions, Xykis's direct beneficial ownership of Common Stock decreased from 48,855 shares to 33,859 shares.
• The number of beneficially owned Stock Appreciation Rights decreased from 43,330 to 28,334 after the exercise.

Sentiment

Score: 5

Explanation: The filing reports a routine executive compensation event involving the exercise of Stock Appreciation Rights and cash settlement. This is a neutral event for the company's operational performance, though it represents a positive financial outcome for the executive. The reduction in direct share ownership is a consequence of the cash settlement mechanism rather than a direct sale of previously held shares.

Positives

• CEO Constantine Xykis realized a significant cash gain of approximately $1,304,852.96 from the exercise of 14,996 Stock Appreciation Rights (SARs) at an effective price of $90 per right, against an exercise price of $2.99.
• The transaction represents a successful monetization of long-term incentive compensation for the CEO.

Negatives

• The direct beneficial ownership of Common Stock by CEO Constantine Xykis decreased by 14,996 shares, from 48,855 to 33,859, which could be interpreted as a reduction in direct insider alignment with shareholder interests, although it is a result of a cash-settled SAR exercise.

Future Outlook

No forward-looking statements or guidance were provided in this filing.

Industry Context

This filing details a routine executive compensation transaction and does not provide information relevant to broader industry trends or competitive dynamics.

Related Party Transactions

• The exercise of Stock Appreciation Rights by the CEO is a transaction between the company and an executive, which falls under the broad definition of a related party transaction as it involves compensation arrangements.

Stakeholder Impact

• Shareholders: The transaction itself is a routine compensation event and does not directly impact the company's operational performance or financial health. The cash settlement means no new shares were issued to the CEO, avoiding dilution from this specific transaction. However, the reduction in direct common stock ownership by the CEO could be viewed neutrally to slightly negatively by some investors seeking strong insider alignment.
• Employees: No direct impact on employees is indicated.
• Customers: No direct impact on customers is indicated.
• Suppliers: No direct impact on suppliers is indicated.
• Creditors: No direct impact on creditors is indicated.

Key Dates

Keywords

Power Solutions International, PSIX, Constantine Xykis, CEO, Stock Appreciation Rights, SARs, Insider Transaction, Form 4, Executive Compensation, Cash Settlement