Form 4: QXO Inc. Chief Technology Officer Valeri Liborski Reports Acquisition of Restricted and Performance Stock Units

Valeri Liborski, Chief Technology Officer of QXO Inc., reports the acquisition of restricted stock units (RSUs) and performance stock units (PSUs) on April 21, 2025.

Summary

• On April 21, 2025, Valeri Liborski, the Chief Technology Officer of QXO Inc., acquired 255,504 Restricted Stock Units (RSUs) and 255,504 Performance Stock Units (PSUs).
• The RSUs vest in five installments between December 31, 2026, and December 31, 2030, contingent upon continued employment.
• The PSUs vest based on QXO's total shareholder return (TSR) relative to the S&P 500 Index over various performance periods ending between December 31, 2026, and December 31, 2028, also contingent upon continued employment.
• The maximum number of PSUs that may vest is capped at 225% of the target number of PSUs.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as the grant of RSUs and PSUs aligns executive interests with shareholders and incentivizes long-term performance. However, the vesting is contingent and performance-based, introducing some uncertainty.

Positives

• The grant of RSUs and PSUs aligns the executive's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the Chief Technology Officer.
• Performance-based vesting of PSUs incentivizes the achievement of superior shareholder returns relative to the S&P 500.

Risks

• The vesting of RSUs and PSUs is contingent upon continued employment, creating a potential risk if the executive leaves the company before the vesting dates.
• The performance-based vesting of PSUs is subject to market conditions and the company's ability to outperform the S&P 500, which may not always be within the company's control.

Future Outlook

The vesting of the RSUs and PSUs is contingent upon continued employment and, in the case of PSUs, the company's TSR performance relative to the S&P 500.

Industry Context

Granting stock-based compensation to key executives is a common practice in the industry to align their interests with those of shareholders and incentivize long-term value creation. The use of TSR-based performance metrics is also a standard approach to ensure that executive compensation is tied to the company's financial performance relative to its peers.

Comparison to Industry Standards

• Companies like Amazon, Alphabet, and Microsoft also use stock-based compensation extensively for their executives.
• TSR performance metrics are commonly used by companies in the S&P 500 for executive compensation.
• The vesting schedules and performance targets are generally aligned with industry practices to retain key talent and drive long-term growth.

Stakeholder Impact

• Shareholders: The grant of PSUs tied to TSR aims to enhance shareholder value.
• Employees: The executive compensation structure may influence overall employee morale and motivation.
• Executive: The vesting of RSUs and PSUs provides a long-term incentive for the Chief Technology Officer.

Key Dates

Keywords

QXO Inc., Valeri Liborski, Chief Technology Officer, Restricted Stock Units, Performance Stock Units, RSU, PSU, TSR, S&P 500, Vesting