Form 4: Quaker Chemical Corp Executive Thomas Coler Acquires Restricted Stock Units

Executive Vice President and CFO of Quaker Chemical Corp, Thomas Coler, was granted 5,565 restricted stock units on December 15, 2024, under the company's 2024 Long-Term Performance Incentive Plan.

Summary

• Thomas Coler, Executive Vice President and CFO of Quaker Chemical Corp, received 5,565 restricted stock units on December 15, 2024.
• These restricted stock units were granted under the company's 2024 Long-Term Performance Incentive Plan.
• The number of units that will vest will 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 restricted stock units vest on the third anniversary of the grant date, which is December 15, 2027.
• Each restricted stock 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 and as 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 vesting adds a layer of positive sentiment.

Positives

• The grant of restricted stock units aligns executive compensation with the company's long-term performance.
• The performance-based vesting criteria incentivize management to improve the company's TSR relative to the S&P 1500 Index.
• Dividend equivalent rights provide additional value to the executive.

Risks

• The actual number of shares received could be lower than the target if the company's TSR underperforms the S&P 1500 Index.
• The vesting of the restricted stock units is contingent on continued employment through the vesting date.

Future Outlook

The vesting of the restricted stock units is dependent on the company's performance over the next three years, specifically its Total Shareholder Return relative to the S&P 1500 Index.

Industry Context

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

Comparison to Industry Standards

• Many companies in the chemical industry use similar long-term incentive plans that include performance-based restricted stock units.
• The use of TSR relative to a broad market index like the S&P 1500 is a common benchmark for performance measurement.
• Companies like Dow and DuPont also use similar metrics in their executive compensation plans.

Stakeholder Impact

• Shareholders may view the performance-based vesting positively as it aligns management's interests with long-term value creation.
• Employees may see this as a positive sign of the company's commitment to its leadership.

Key Dates

Keywords

restricted stock units, executive compensation, TSR, long-term incentive plan, stock grant, Quaker Chemical Corp, Thomas Coler