Form 4: QRHC CFO Granted 40,000 Restricted Stock Units

Quest Resource Holding Corp's Sr. VP of Finance and CFO, Brett Wade Johnston, was granted 40,000 restricted stock units (RSUs) vesting over three years.

Summary

• Brett Wade Johnston, Sr. VP of Finance and CFO of Quest Resource Holding Corp (QRHC), was granted 40,000 restricted stock units (RSUs).
• The RSUs were granted on August 13, 2025, under the Issuer's 2024 Incentive Compensation Plan.
• Each RSU represents a contingent right to receive one share of QRHC common stock upon vesting.
• The new RSUs will vest in three equal installments: one-third on August 13, 2026, one-third on August 13, 2027, and one-third on August 13, 2028.
• Following this transaction, Mr. Johnston beneficially owns 87,583 securities, which include 13,333 previously reported RSUs, the new 40,000 RSUs, and 34,250 shares of common stock.

Sentiment

Score: 7

Explanation: The grant of restricted stock units to a key executive is generally a positive sign for retention and alignment of interests, indicating confidence in the executive's continued contribution and the company's future performance. It's a standard compensation practice.

Positives

• Grant of 40,000 restricted stock units aligns the CFO's interests with long-term shareholder value.
• The multi-year vesting schedule (three years) acts as a retention mechanism for a key executive.
• The grant is part of the company's 2024 Incentive Compensation Plan, indicating a structured approach to executive incentives.

Negatives

• No direct negatives are apparent from this specific RSU grant filing.

Risks

• The value of the RSUs is tied to the future stock price of Quest Resource Holding Corp, exposing the recipient to market fluctuations.
• Vesting is contingent on continued employment, meaning the RSUs could be forfeited if the CFO's employment ceases before vesting dates.
• Future share issuance upon vesting could lead to minor dilution for existing shareholders.

Future Outlook

The grant of restricted stock units indicates a future issuance of 40,000 shares of common stock to the CFO upon successful vesting over the next three years, contingent on continued employment and company performance as per the incentive plan.

Industry Context

The granting of restricted stock units to key executives like the CFO is a common practice across various industries, particularly in publicly traded companies, to incentivize long-term performance, align management interests with shareholders, and retain talent. This filing reflects a standard executive compensation mechanism.

Comparison to Industry Standards

• The use of restricted stock units (RSUs) with multi-year vesting is a widely adopted compensation strategy for senior executives in public companies, comparable to practices at firms like Waste Management (WM) or Republic Services (RSG) in the broader waste and resource management sector, which also utilize equity-based incentives to align executive performance with shareholder returns. The specific number of units granted would typically be benchmarked against peer group compensation data, though such comparative data is not provided in this filing.

Corporate Governance

Related Party Transactions

• The RSU grant to the CFO is a transaction with a related party (executive), which is a standard compensation practice disclosed as required by SEC regulations.

Stakeholder Impact

• Shareholders: Potential minor dilution from future share issuance upon RSU vesting; improved alignment of executive interests with long-term shareholder value.
• Employees: May signal stability and a commitment to executive retention, potentially boosting morale.
• Management: Strengthens the CFO's financial interest in the company's long-term success and provides a significant incentive for continued performance.

Next Steps

• Vesting of 13,333 previously reported RSUs in two equal installments on June 26, 2026, and June 26, 2027.
• Vesting of 40,000 newly granted RSUs in three equal installments on August 13, 2026, August 13, 2027, and August 13, 2028.
• Issuance of common stock shares to Brett Wade Johnston upon the successful vesting of the RSUs.

Key Dates

Keywords

Quest Resource Holding Corp, QRHC, Restricted Stock Units, RSU, Executive Compensation, Insider Transaction, Form 4, Stock Grant, Corporate Governance, CFO