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

Jacqueline Friesner, SVP, Controller and Principal Accounting Officer of Restaurant Brands International, received awards of restricted share units (RSUs) and performance share units (PSUs) on April 4, 2024.

Summary

• Jacqueline Friesner, a key officer at Restaurant Brands International, received multiple grants of restricted share units (RSUs) and performance share units (PSUs) on April 4, 2024.
• These awards are part of her compensation and are subject to vesting schedules and, in the case of PSUs, performance conditions.
• The RSUs vest over various periods, generally in installments on December 15th or 31st of each year, depending on the specific grant.
• The PSUs have performance periods and vest on specific dates in the future, contingent on the company's performance during those periods.
• Friesner also holds exchangeable units convertible into common shares, options to buy common shares, and directly owns 151,532.6269 common shares.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively as it aligns management's interests with shareholders. The sentiment is neutral to slightly 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 encourage continued service and commitment from the executive.

Risks

• The value of the RSUs and PSUs is tied to the performance of Restaurant Brands International's stock, which is subject to market fluctuations.
• The PSUs are contingent on the company achieving specific performance targets, which may not be met.

Future Outlook

The document does not contain explicit forward-looking statements, but the vesting of PSUs is contingent on future performance.

Industry Context

Granting stock-based compensation is a common practice in the restaurant industry to align executive incentives with shareholder value. Companies like McDonald's, Starbucks, and Yum! Brands 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 (MCD) and Starbucks (SBUX) also utilize a mix of salary, bonus, stock options, and restricted stock units to compensate their executives.
• The specific vesting schedules and performance metrics for PSUs vary from company to company, but the overall goal is to incentivize long-term value creation.
• For example, McDonald's often ties PSU vesting to metrics like comparable sales growth and return on invested capital, while Starbucks may use revenue growth and earnings per share as performance criteria.

Stakeholder Impact

• Shareholders: The granting of RSUs and PSUs can positively impact shareholder value if it incentivizes executives to improve company performance.
• Employees: Executive compensation packages can influence employee morale and perceptions of fairness within the organization.

Key Dates