Form 4: SM Energy Co: SVP Bus Dev & Land Acquires Restricted Stock Units

Kenneth J. Knott, SVP Bus Dev & Land at SM Energy Co, reports acquisition of 9,162 restricted stock units.

Summary

• On July 26, 2024, Kenneth J. Knott, SVP Bus Dev & Land at SM Energy Co, reported acquiring 9,162 restricted stock units.
• Each restricted stock unit represents a contingent right to receive one share of SM Energy Co stock.
• The restricted stock unit grant vests in three equal annual installments beginning on July 1, 2025.
• Vested shares will be issued to the Reporting Person on the vesting dates, at which time all restrictions on the vested shares will lapse.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing related to executive compensation, indicating a neutral sentiment.

Positives

• The acquisition of restricted stock units aligns the executive's interests with those of the shareholders.

Future Outlook

The vested shares will be issued to the Reporting Person on the vesting dates, at which time all restrictions on the vested shares will lapse.

Industry Context

This is a standard practice for aligning management incentives with company performance in the energy sector.

Comparison to Industry Standards

• Granting restricted stock units is a common compensation practice among publicly traded energy companies to incentivize executives.
• Companies like ExxonMobil, Chevron, and ConocoPhillips also use similar equity-based compensation plans.

Stakeholder Impact

• The acquisition of restricted stock units by a company executive can have a positive impact on shareholders by aligning management's interests with the company's long-term success.

Key Dates