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

Jeffrey W. Klein, President of Popeyes-US & Canada, received restricted share units and performance share units in Restaurant Brands International Inc.

Summary

• Jeffrey W. Klein, President of Popeyes-US & Canada, reported changes in beneficial ownership of Restaurant Brands International Inc. securities.
• On April 4, 2024, Klein acquired restricted share units (RSUs) and performance share units (PSUs).
• These awards include 26.7546 RSUs representing dividend equivalent rights vesting on December 31, 2024.
• An additional 17.68 RSUs vest in equal installments on December 15 of 2023, 2024, 2025, and 2026.
• Further awards include 36.5666 RSUs vesting in equal installments on December 15 of 2024, 2025, 2026, and 2027.
• Klein also received 80.2718 performance-based restricted share units (PBRSUs) from the 2022 plan, vesting on February 25, 2025, subject to performance conditions.
• He was granted 74.8555 PBRSUs from the 2023 plan, vesting on February 22, 2026, also subject to performance conditions.
• Finally, Klein received 167.4505 performance share units (PSUs) from the 2024 plan, vesting on March 15, 2027, contingent on performance.
• Klein directly owns 6,801.2391 common shares.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating confidence in the company's future performance. 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 continued service and commitment from the executive.
• The performance-based nature of some of the awards ensures that payouts are linked 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, which is subject to market risks.
• The performance-based awards are subject to the achievement of specific performance conditions, which may not be met.
• The executive may leave the company before the vesting dates, potentially forfeiting some or all of the unvested awards.

Future Outlook

The future value of the awarded RSUs and PSUs depends on the performance of Restaurant Brands International Inc. and the achievement of specific performance goals.

Industry Context

Executive compensation through equity awards is a common practice in the restaurant industry to align management's interests with those of shareholders and incentivize long-term growth.

Comparison to Industry Standards

• Comparing the size and structure of these equity awards to those of executives at similar companies like McDonald's, Starbucks, or Yum! Brands would provide a better understanding of whether the compensation is in line with industry standards.
• Benchmarking the performance metrics used for the performance share units against those used by competitors would also be beneficial.
• Analyzing the vesting schedules and terms of the awards relative to industry norms can provide insights into the competitiveness of the compensation package.

Stakeholder Impact

• Shareholders may view the equity awards positively as they align management's interests with the company's long-term success.
• Employees may see the awards as a sign of the company's commitment to its leadership team.
• The awards have no direct impact on customers, suppliers, or creditors.

Key Dates