Form 4: Seadrill Director Acquires Restricted Stock Units

Director Harry Quarls receives 4,860 restricted stock units in Seadrill Ltd.

Summary

• Harry Quarls, a director of Seadrill Ltd, was granted 4,860 restricted stock units on May 14, 2025.
• Each restricted stock unit represents a contingent right to receive one common share of Seadrill Limited.
• The restricted stock units will vest on the date of the 2026 Annual General Meeting if it occurs at least 50 weeks from the grant date.
• If the 2026 Meeting occurs less than 50 weeks from the grant date, the units will vest on the first anniversary of the grant date.
• Settlement will be in cash or common shares at the discretion of the Joint Nomination and Remuneration Committee.

Sentiment

Score: 7

Explanation: The document reflects a standard equity compensation practice, which is generally viewed neutrally to positively as it aligns management interests with shareholders. The sentiment is moderately positive due to the incentive structure.

Positives

• The grant of restricted stock units aligns the director's interests with those of the shareholders.

Future Outlook

The vesting of the restricted stock units is tied to the 2026 Annual General Meeting or the first anniversary of the grant date, indicating a future-oriented incentive for the director.

Industry Context

Equity compensation is a common practice in the oil and gas industry to incentivize executives and align their interests with shareholders.

Comparison to Industry Standards

• Granting restricted stock units to directors is a standard practice across many publicly listed companies, including those in the energy sector like ExxonMobil (XOM) and Chevron (CVX).
• The vesting schedules, often tied to tenure or company performance, are also typical, similar to those used by companies such as Schlumberger (SLB) and Halliburton (HAL).

Stakeholder Impact

• Shareholders may view the grant of restricted stock units positively as it incentivizes the director to work towards increasing shareholder value.

Key Dates

Keywords

Seadrill, restricted stock units, director, SDRL, equity compensation, Form 4