Form 4: Select Water Solutions EVP, COO Michael Skarke Reports Changes in Beneficial Ownership

Michael Skarke, EVP and COO of Select Water Solutions, reports the acquisition and disposal of Class A Common Stock due to vesting of restricted stock and tax withholding.

Summary

• On February 24, 2024, Michael Skarke, EVP and COO of Select Water Solutions, acquired 43,537 shares of Class A Common Stock at $0.
• On the same day, he disposed of 28,859 shares at $8.8 to cover tax withholding obligations.
• Following these transactions, Skarke directly owns 383,463 shares of Class A Common Stock.
• The acquired shares are restricted stock granted under the Select Energy Services, Inc. 2016 Equity Incentive Plan and will vest in three equal installments on February 24, 2025, February 24, 2026, and February 24, 2027.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The filing reflects routine transactions related to executive compensation. The acquisition of shares is a positive sign, but the disposal for tax purposes is a standard procedure.

Positives

• The acquisition of shares indicates confidence in the company's future performance.

Negatives

• The disposal of shares to cover tax obligations, while standard, reduces the executive's holdings.

Industry Context

Form 4 filings are routine and provide transparency into the trading activities of company insiders, which can be an indicator of management's sentiment towards the company's prospects. This filing is typical for executives receiving stock-based compensation.

Comparison to Industry Standards

• Stock-based compensation is a common practice in the energy services industry to align executive interests with shareholder value.
• Companies like Halliburton, Schlumberger, and Baker Hughes also utilize equity incentive plans for their executives.
• The vesting schedule of 1/3 per year over three years is a standard vesting schedule.

Stakeholder Impact

• Shareholders are informed about the insider transactions of a key executive.
• The transactions have a minor impact on the overall shareholding structure.

Key Dates