Form 4: Reynolds Consumer Products Executive Awarded 6,102 Restricted Stock Units Following Performance Period

Michael F. McMahon, VP-Senior Sales Team at Reynolds Consumer Products, received 6,102 restricted stock units (RSUs) after performance conditions were met for fiscal year 2024.

Summary

• Michael F. McMahon, a VP-Senior Sales Team member at Reynolds Consumer Products, was granted 6,102 restricted stock units (RSUs).
• These RSUs were converted from performance share units (PSUs) that were initially granted on February 1, 2024.
• The number of PSUs earned was determined based on the company's performance during fiscal year 2024.
• The performance conditions were met, resulting in the conversion of 6,102 PSUs to RSUs on January 29, 2025.
• The RSUs will vest on February 1, 2027.

Sentiment

Score: 7

Explanation: The document reflects a positive outcome of performance targets being met, leading to the vesting of stock units. This is a standard practice and does not indicate any significant positive or negative sentiment.

Positives

• The vesting of the RSUs indicates that performance targets were met for fiscal year 2024.
• The award of RSUs aligns executive compensation with company performance.

Future Outlook

The RSUs will vest on February 1, 2027, contingent on continued service.

Industry Context

This type of stock-based compensation is common in publicly traded companies to align executive interests with shareholder value.

Comparison to Industry Standards

• Stock-based compensation, such as RSUs and PSUs, is a standard practice among publicly traded companies like Reynolds Consumer Products.
• Companies such as Amcor, Berry Global, and Sealed Air also use similar compensation structures to incentivize their executives.
• The vesting period of the RSUs, which is approximately two years from the grant date, is within the typical range for such awards.

Stakeholder Impact

• The award of RSUs to a key executive aligns management's interests with those of shareholders.
• The vesting of the RSUs is contingent on continued service, which may encourage executive retention.

Next Steps

• The RSUs will vest on February 1, 2027, provided the service-based vesting condition is met.

Key Dates

Keywords

Restricted Stock Units, RSU, Performance Share Units, PSU, Executive Compensation, Reynolds Consumer Products, Stock Award, Vesting