Form 4: Schlumberger Executive's Stock Transactions Reflect Final PSU Vesting

Abdellah Merad, an EVP at Schlumberger, reports stock transactions related to the final determination of performance share units (PSUs) vesting based on the company's performance relative to competitors.

Summary

• On March 1, 2024, Abdellah Merad, EVP of Core Services & Equipment at Schlumberger, reported transactions involving Schlumberger common stock.
• These transactions relate to the vesting of performance share units (PSUs) granted on January 20, 2021.
• The vesting of these PSUs was contingent on Schlumberger's three-year performance compared to key competitors.
• Initially, only 80% of the shares were issued due to pending financial results from competitors.
• After all competitors reported their 2023 audited financial results, the final determination of earned shares was made.
• Merad acquired 16,805 shares at $0 and disposed of 6,613 shares at $49.26.
• Following these transactions, Merad directly owns 271,699 shares of Schlumberger common stock.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing detailing stock transactions related to executive compensation. It doesn't contain any overtly positive or negative information, hence a neutral sentiment score.

Industry Context

Executive stock transactions are a routine part of corporate governance, especially concerning equity-based compensation like PSUs. The timing of the final PSU vesting determination is tied to the availability of competitor financial data, which is common practice.

Comparison to Industry Standards

• Schlumberger's use of performance share units (PSUs) for executive compensation is a common practice among large, publicly traded companies, particularly in the energy sector.
• Companies like Halliburton (HAL) and Baker Hughes (BKR) also utilize similar equity-based compensation plans to align executive incentives with company performance.
• The vesting criteria based on performance relative to competitors is a standard approach to ensure executives are rewarded for outperforming peers.
• The delay in final determination of PSU vesting until competitor financial results are available is also a common practice to ensure accurate performance assessment.

Stakeholder Impact

• The transactions may have a minor impact on shareholders due to the change in beneficial ownership of shares.
• The vesting of PSUs incentivizes the executive to improve company performance, which can benefit shareholders.

Key Dates