Form 4: SM Energy Co. Executive Receives Stock Grant

James Barker Lebeck, EVP & General Counsel of SM Energy Co., was granted 18,323 restricted stock units on July 26, 2024, which vest in three equal annual installments starting July 1, 2025.

Summary

• On July 26, 2024, James Barker Lebeck, the EVP & General Counsel of SM Energy Co., received a grant of 18,323 restricted stock units.
• These restricted stock units represent a contingent right to receive one share of SM Energy Co. stock each.
• The grant vests in three equal annual installments, beginning on July 1, 2025.
• Vested shares will be issued to Lebeck on the vesting dates, at which point all restrictions on the shares will be lifted.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. It reflects standard executive compensation practices, aligning executive interests with shareholder value through equity ownership.

Positives

• The grant of restricted stock units to a key executive aligns their interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the executive.

Future Outlook

The executive will receive shares of SM Energy Co. stock as the restricted stock units vest over the next three years, aligning their interests with the company's long-term performance.

Industry Context

This type of equity compensation is common in the energy industry to incentivize executives and align their interests with shareholders.

Comparison to Industry Standards

• Granting restricted stock units is a standard practice among publicly traded companies, including those in the energy sector, to incentivize executives.
• Companies like ExxonMobil, Chevron, and ConocoPhillips also use similar equity-based compensation plans for their executives.

Stakeholder Impact

• Shareholders may view this as a positive sign, as it aligns the executive's interests with the company's long-term success.
• Employees may see this as a sign of stability and commitment from the company to its leadership.

Next Steps

• The executive will receive shares of SM Energy Co. stock as the restricted stock units vest over the next three years.

Key Dates