Form 4: Schlumberger Executive Acquires Shares Following Performance Share Unit Vesting

Demosthenis Pafitis, Chief Technology Officer of Schlumberger, acquired 10,505 shares of common stock on March 1, 2024, following the final determination of earned shares under previously granted performance share units.

Summary

• On March 1, 2024, Demosthenis Pafitis, Chief Technology Officer of Schlumberger, acquired 10,505 shares of Schlumberger common stock.
• This acquisition resulted from the final determination of shares earned under performance share units (PSUs) granted on January 20, 2021.
• The vesting of these PSUs was based on Schlumberger's three-year performance relative to key competitors.
• Initially, only 80% of the shares were issued due to pending financial results from competitors.
• Following the release of all competitor's 2023 audited financial results, the final share allocation was determined.
• Pafitis also disposed of 4,558 shares on March 1, 2024, at a price of $49.26.
• Following these transactions, Pafitis directly owns 96,516 shares and indirectly owns 710 shares through a spouse.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The acquisition of shares suggests confidence, but the disposal tempers the positive outlook. The vesting of PSUs indicates satisfactory performance.

Positives

• The vesting of performance share units indicates that Schlumberger met certain performance targets relative to its competitors.
• The acquisition of shares by a key executive could be interpreted as a sign of confidence in the company's future performance.

Negatives

• The disposal of 4,558 shares by the executive could be seen as a negative signal, although it may be related to tax obligations or portfolio diversification.

Risks

• The value of the acquired shares is subject to market fluctuations and the overall performance of Schlumberger.
• Future performance share unit vesting may be affected by changes in the competitive landscape or shifts in Schlumberger's strategic priorities.

Future Outlook

The document does not contain explicit forward-looking statements, but the vesting of PSUs suggests an expectation of continued strong performance relative to competitors.

Industry Context

Executive stock transactions are common in the oilfield services industry and are often tied to performance-based compensation plans. The vesting of PSUs indicates that Schlumberger's performance was deemed satisfactory compared to its peers.

Comparison to Industry Standards

• Executive compensation packages in the oil and gas industry often include performance-based equity awards, such as PSUs, to align management's interests with those of shareholders.
• Companies like Halliburton and Baker Hughes also utilize similar compensation structures to incentivize performance and retain key executives.
• The specific vesting criteria and performance metrics vary among companies, but relative performance against peers is a common factor.

Stakeholder Impact

• The transaction could have a minor positive impact on shareholder sentiment, as it signals executive confidence.
• The vesting of PSUs rewards the executive for achieving performance goals, aligning their interests with those of shareholders.

Key Dates