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

Thomas Benjamin Curtis IV, President of Burger King U.S. and Canada, receives awards of restricted share units (RSUs) and performance share units (PSUs) in Restaurant Brands International Inc. (QSR).

Summary

• Thomas Benjamin Curtis IV, President of Burger King U.S. and Canada, has been granted restricted share units (RSUs) and performance share units (PSUs) in Restaurant Brands International Inc.
• The transaction date is October 4, 2024.
• The RSUs vest in installments over several years, with some tied to dividend equivalent rights.
• The PSUs have performance periods and vesting dates extending into 2027, with the number of shares earned subject to performance conditions.
• Following the reported transactions, Curtis directly owns 37,178.7284 common shares.
• He also holds derivative securities including 4,221.1909 RSUs, 5,534.96 RSUs, 16,604.8799 PSUs, 5,015.9174 RSUs, 43,324.3042 PSUs, 7,200.0163 RSUs, 46,788.4828 PSUs, 14,874.8643 RSUs and 61,143.3434 PSUs.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The granting of RSUs and PSUs is a standard practice and generally viewed favorably as it aligns management's interests with shareholders. The specific terms of the awards will determine the ultimate impact.

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 continued service and commitment from the executive.

Risks

• The value of the RSUs and PSUs is subject to the performance of Restaurant Brands International's stock, which can be affected by market conditions and company-specific factors.
• The actual number of shares earned from PSUs depends on the achievement of performance conditions, which may not be met.

Future Outlook

The number of common shares that will be earned at the end of the performance period is subject to increase or decrease based on the results of the performance condition.

Industry Context

Granting stock-based compensation is a common practice in the restaurant industry to align executive incentives with shareholder value and retain key personnel. Companies like McDonald's (MCD) and Starbucks (SBUX) also utilize similar compensation strategies.

Comparison to Industry Standards

• Restaurant Brands International's executive compensation practices, including the use of RSUs and PSUs, are generally in line with industry standards.
• Companies like McDonald's and Starbucks also use a mix of salary, bonus, and equity-based compensation to incentivize their executives.
• The specific terms of the RSUs and PSUs, such as vesting schedules and performance conditions, are tailored to Restaurant Brands International's specific goals and circumstances.

Stakeholder Impact

• Shareholders: The granting of equity-based compensation aims to align management's interests with shareholder value.
• Employees: The compensation structure can influence employee morale and motivation.
• Executives: The awards provide incentives for achieving performance targets and long-term growth.

Key Dates