Form 4: Quaker Chemical Corp Executive Awarded Restricted Stock Units

Jeewat Bijlani, EVP and Chief Strategy Officer at Quaker Chemical Corp, was granted 4,255 restricted stock units under the company's 2024 Long-Term Performance Incentive Plan.

Summary

• Jeewat Bijlani, the EVP and Chief Strategy Officer of Quaker Chemical Corp, received 4,255 restricted stock units on December 15, 2024.
• These restricted stock units are part of the company's 2024 Long-Term Performance Incentive Plan.
• The number of units can be adjusted between 75% and 125% based on the company's Total Shareholder Return (TSR) relative to the S&P 1500 Index over a three-year period.
• The performance period runs from December 15, 2024, to December 15, 2027.
• The restricted stock units vest on the third anniversary of the grant date.
• Each unit represents a contingent right to receive one share of KWR common stock.
• Dividend equivalent rights accrue with respect to these restricted stock units when dividends are paid on KWR's common stock.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively as it aligns management with shareholder interests. The performance-based modifier adds a layer of positive incentive.

Positives

• The grant of restricted stock units aligns executive compensation with the company's long-term performance.
• The performance-based modifier incentivizes the executive to improve the company's TSR relative to the S&P 1500 Index.
• The vesting period of three years encourages long-term commitment from the executive.

Risks

• The value of the restricted stock units is dependent on the company's stock price and performance relative to the S&P 1500 Index.
• If the company's TSR underperforms the S&P 1500 Index, the number of units received could be reduced.

Future Outlook

The number of restricted stock units will be adjusted based on the company's relative TSR performance over the next three years.

Industry Context

The use of restricted stock units with performance-based modifiers is a common practice in executive compensation to align management interests with shareholder value.

Comparison to Industry Standards

• Many companies in the chemical industry use similar long-term incentive plans, often tied to TSR or other financial metrics.
• Companies like Dow and DuPont also use a mix of stock options, restricted stock, and performance-based units in their executive compensation packages.
• The three-year vesting period is a standard practice in the industry to ensure long-term commitment from executives.

Stakeholder Impact

• Shareholders may view this positively as it aligns executive compensation with company performance.
• Employees may see this as a sign of the company's commitment to its leadership team.

Next Steps

• The executive will need to meet the performance criteria over the next three years for the restricted stock units to fully vest.
• The company will monitor its TSR relative to the S&P 1500 Index to determine the final number of units awarded.

Key Dates

Keywords

restricted stock units, executive compensation, long-term incentive plan, TSR, performance-based, stock options, equity, KWR, Quaker Chemical Corp