Form 4: Sensient Technologies Executive Receives Equity Awards

Steven B. Morris, President of Flavors Group at Sensient Technologies, was granted restricted stock and performance stock units on December 17, 2025.

Summary

• Steven B. Morris, President of Flavors Group at Sensient Technologies Corp (SXT), acquired 1,761 shares of Common Stock as a restricted stock grant on December 17, 2025.
• The restricted shares are subject to a three-year restriction period following the grant date.
• Morris also acquired 2,641 Performance Stock Units (PSUs) on December 17, 2025, which are eligible to vest following a three-year performance period from January 1, 2026, through December 31, 2028.
• Vesting for the new PSUs is based on applicable performance criteria related to revenue and return on invested capital (ROIC).
• Beneficial ownership after these transactions includes 7,332.368 shares of Common Stock held directly and 1,130.864 shares held indirectly through the Issuer's ESOP.
• Morris holds an additional 2,683 PSUs with a performance period from January 1, 2025, through December 31, 2027, vesting based on EBITDA growth (70%) and ROIC (30%).
• Morris also holds 2,962 PSUs with a performance period from January 1, 2024, through December 31, 2026, vesting based on EBITDA growth (70%) and ROIC (30%).
• The actual number of shares earned from PSUs can range from 0% to 200% of the target award amount, depending on the achievement of performance criteria.

Sentiment

Score: 6

Explanation: This is a routine insider transaction filing (Form 4) detailing executive compensation. It is neither significantly positive nor negative for the company's immediate prospects but reflects standard corporate governance and incentive alignment practices.

Positives

• The grant of restricted stock and performance stock units aligns the executive's interests with long-term shareholder value creation.
• Performance-based vesting criteria, including revenue, ROIC, and EBITDA growth, incentivize the executive to achieve key financial objectives for the company.

Risks

• The executive's compensation from performance stock units is contingent upon the achievement of specific company performance criteria, meaning the actual payout may be less than the target award if performance targets are not met.

Future Outlook

The executive's future compensation is directly tied to the company's performance in key areas such as revenue growth, EBITDA growth, and return on invested capital over multi-year periods, indicating a focus on achieving long-term strategic objectives.

Industry Context

The granting of restricted stock and performance stock units is a common practice in executive compensation across various industries, designed to align the interests of executives with those of shareholders and incentivize long-term performance.

Comparison to Industry Standards

• The use of restricted stock and performance stock units with multi-year vesting and performance criteria (revenue, EBITDA growth, ROIC) is a standard and widely accepted approach for executive incentive compensation in publicly traded companies.
• This compensation structure is typical within the consumer staples and specialty ingredients sectors, where Sensient Technologies operates, for companies of similar size and market capitalization.

Related Party Transactions

• The equity grants to an executive officer are standard compensation under the Issuer's 2017 Stock Plan, as amended and restated, representing a typical related party transaction in the context of executive incentive plans.

Stakeholder Impact

• Shareholders: The grants align the executive's financial interests with long-term shareholder value creation through performance-based vesting.
• Management: The executive receives significant equity incentives directly tied to company performance, fostering motivation for achieving strategic goals.

Next Steps

• The 1,761 restricted shares of Common Stock will vest after three years from the grant date of December 17, 2025.
• The 2,641 newly granted Performance Stock Units will be evaluated and vest following their three-year performance period ending December 31, 2028, based on revenue and ROIC criteria.
• The 2,683 existing Performance Stock Units will be evaluated and vest following their three-year performance period ending December 31, 2027, based on EBITDA growth and ROIC criteria.
• The 2,962 existing Performance Stock Units will be evaluated and vest following their three-year performance period ending December 31, 2026, based on EBITDA growth and ROIC criteria.

Key Dates

Keywords

SXT, Sensient Technologies, Form 4, Insider Transaction, Equity Compensation, Restricted Stock, Performance Stock Units, Executive Compensation, Corporate Governance