4/A: Select Water Solutions Executive Acquires Performance Share Units

Michael James Lyons, EVP, CSO and CTO of Select Water Solutions, Inc., reports the acquisition of 21,769 performance share units (PSUs) in an amended SEC Form 4 filing.

Summary

• Michael James Lyons, an executive at Select Water Solutions, Inc., filed an amended SEC Form 4 to report the acquisition of 21,769 performance share units (PSUs).
• The PSUs were inadvertently omitted from the original Form 4 filing.
• These PSUs represent a contingent right to receive one share of Class A common stock each.
• The vesting of these PSUs, between 0% and 200% of the target number, depends on continued employment and the company's annualized absolute total shareholder return from January 1, 2024, to December 31, 2026.

Sentiment

Score: 7

Explanation: The document itself is neutral, as it's a regulatory filing. However, the granting of performance share units can be seen as a positive sign, indicating confidence in the company's future performance. The fact that it was an amendment due to an omission is slightly negative, but not significantly so.

Positives

• The acquisition of performance share units aligns the executive's interests with the company's performance and shareholder value.

Future Outlook

The vesting of the performance share units is contingent upon the company's future performance, specifically its annualized absolute total shareholder return over the period from January 1, 2024, to December 31, 2026.

Management Comments

• This amendment is being filed to report the PSUs that were inadvertently omitted from the original Form 4.

Industry Context

This filing is a routine disclosure related to executive compensation and is common in publicly traded companies. The use of performance share units is a typical method to incentivize executives to achieve specific performance goals.

Comparison to Industry Standards

• Performance share units are a common form of executive compensation in the energy and water solutions industries.
• Companies like Halliburton, Schlumberger, and Baker Hughes also utilize similar equity-based compensation plans to align executive interests with shareholder value.
• The vesting criteria based on total shareholder return is a standard metric used in these plans.

Stakeholder Impact

• Shareholders may view the granting of performance share units as a positive sign, aligning executive interests with shareholder value.
• Employees may see this as a sign of confidence in the company's future prospects.

Key Dates