Form 4: Smart Sand Inc. Executive William John Young Reports Acquisition of Restricted Stock

William John Young, Chief Operating Officer of Smart Sand Inc., reports the acquisition of 130,435 shares of restricted stock granted under the company's 2016 Long Term Incentive Award Plan.

Summary

• On February 28, 2025, William John Young, the Chief Operating Officer of Smart Sand, Inc., acquired 130,435 shares of Common Stock.
• These shares were granted as Restricted Stock under the Issuer's 2016 Long Term Incentive Award Plan.
• The restricted stock vests in four equal annual installments on each of the next four anniversaries of the grant date, contingent upon continued employment with Smart Sand.
• Following this transaction, Young directly owns 601,109 shares of Smart Sand, Inc.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. It's a neutral to slightly positive event.

Positives

• The grant of restricted stock aligns the executive's interests with the long-term performance of the company.
• The vesting schedule encourages continued service and commitment from the executive.

Risks

• The value of the restricted stock is subject to the market fluctuations of Smart Sand, Inc.'s stock price.
• Failure to meet the continued employment requirement would result in forfeiture of unvested shares.

Future Outlook

The vesting of the restricted stock is tied to the executive's continued employment over the next four years.

Industry Context

This type of equity compensation is common in the industry to incentivize and retain key executives.

Comparison to Industry Standards

• Granting restricted stock units (RSUs) that vest over a multi-year period is a common practice among publicly traded companies to align executive compensation with long-term shareholder value.
• Similar companies in the oil and gas services sector, such as U.S. Silica Holdings, Inc. and Covia Holdings Corporation, also utilize equity-based compensation plans for their executives.
• The vesting schedule of four equal annual installments is a fairly standard approach to ensure continued service and commitment from the executive.

Stakeholder Impact

• Shareholders may view this as a positive incentive for the executive to remain with the company and drive long-term value.
• Employees may see this as a sign of the company's commitment to its leadership team.

Key Dates