Form 4: Smart Sand Inc. Executive William John Young Reports Share Transactions Following Performance Award Vesting

William John Young, Chief Operating Officer of Smart Sand, Inc., reports acquisition and disposal of common stock related to performance-based awards vesting on March 5, 2025.

Summary

• On March 5, 2025, William John Young, the Chief Operating Officer of Smart Sand, Inc., reported transactions involving the company's common stock.
• These transactions are related to the vesting of performance-based awards granted on June 7, 2022.
• Mr. Young acquired 12,546 shares based on Return on Invested Capital (ROIC) performance and 13,455 shares based on Total Shareholder Return (TSR) performance.
• 8,079 shares were withheld for tax purposes at a price of $2.1 per share.
• Following these transactions, Mr. Young beneficially owns 619,031 shares of Smart Sand, Inc.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of performance shares suggests the company met its targets, which is a positive indicator. However, the tax withholding is a neutral event.

Positives

• The vesting of performance-based awards suggests that Smart Sand, Inc. met certain ROIC and TSR targets.
• The executive's continued share ownership indicates confidence in the company's future performance.

Negatives

• The withholding of shares for tax purposes reduced the net increase in the executive's holdings.

Industry Context

Executive compensation and share ownership are common practices in publicly traded companies to align management's interests with those of shareholders. Performance-based awards are frequently used to incentivize specific financial or operational achievements.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded companies, particularly in the energy and materials sectors where Smart Sand operates.
• Companies like U.S. Silica Holdings, Inc. and Covia Holdings Corp. (now bankrupt) have historically used similar metrics like ROIC and TSR to incentivize executive performance.
• The specific ROIC and TSR targets, as well as the vesting schedules, would need to be compared to those of peer companies to assess the competitiveness and rigor of Smart Sand's compensation program.

Stakeholder Impact

• Shareholders may view the vesting of performance shares positively, as it indicates the company achieved certain financial goals.
• Employees may be motivated by the company's performance and the alignment of executive compensation with company success.

Key Dates