Form 4: Restaurant Brands International Executive Awarded Performance and Restricted Share Units

Thomas Benjamin Curtis IV, President of Burger King U.S. and Canada, received awards of performance-based and restricted share units in Restaurant Brands International Inc.

Summary

• Thomas Benjamin Curtis IV, President of Burger King U.S. and Canada, reported changes in beneficial ownership of Restaurant Brands International Inc. securities on April 4, 2024.
• The report details the acquisition of restricted share units (RSUs) and performance share units (PSUs).
• These units represent a contingent right to receive common shares of Restaurant Brands International Inc.
• The RSUs vest in installments over several years, with vesting dates ranging from December 2021 to December 2027.
• The PSUs have performance periods and vesting dates tied to specific performance goals, with performance periods ending between December 2023 and February 2027 and vesting dates between September 2024 and March 2027.
• The number of common shares earned from PSUs is subject to increase or decrease based on the results of the performance condition.
• Curtis directly owns 27,104.1023 common shares.
• He also holds a significant number of derivative securities, including 4,152.5081 RSUs from previous grants, and newly acquired RSUs and PSUs.
• Dividend equivalent rights accrue on both RSUs and PSUs, vesting proportionately with the underlying units.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating confidence in the company's future performance and aligning executive interests with shareholder value. The sentiment is neutral to positive.

Positives

• The granting of RSUs and PSUs aligns the executive's interests with those of the shareholders, incentivizing performance and long-term value creation.
• The vesting schedules of the RSUs and PSUs encourage long-term commitment from the executive.
• The performance-based nature of the PSUs ties executive compensation to the achievement of specific performance goals.

Risks

• The value of the RSUs and PSUs is dependent on the future performance of Restaurant Brands International Inc.'s stock price.
• The actual number of shares earned from PSUs may be lower than the reported amount if performance targets are not met.
• Vesting schedules could be impacted by unforeseen circumstances, such as termination of employment.

Future Outlook

The future value of the awarded RSUs and PSUs is contingent on the performance of Restaurant Brands International Inc. and the achievement of performance targets associated with the PSUs.

Industry Context

Granting equity-based compensation is a common practice in the restaurant industry to align executive interests with shareholder value and incentivize long-term growth.

Comparison to Industry Standards

• Companies like McDonald's (MCD) and Starbucks (SBUX) also utilize equity-based compensation for their executives.
• The vesting schedules and performance metrics associated with these awards are typically aligned with industry best practices to ensure effective incentivization.
• The specific terms of the awards, such as the vesting period and performance targets, are tailored to the company's specific goals and circumstances.

Stakeholder Impact

• Shareholders: Aligns executive compensation with company performance, potentially increasing shareholder value.
• Employees: Demonstrates the company's commitment to rewarding and incentivizing its leadership.
• Executives: Provides a financial incentive for achieving company goals and driving long-term growth.

Key Dates