Form 4: Stardust Power Director Michael Earl Cornett Sr. Reports Acquisition of Restricted Stock Units

Michael Earl Cornett Sr., a director of Stardust Power Inc., reports the acquisition of 9,425 restricted stock units (RSUs) tied to continued service on the board.

Summary

• Michael Earl Cornett Sr., a director at Stardust Power Inc., filed a Form 4 on September 20, 2024, reporting a transaction.
• On September 18, 2024, Cornett acquired 9,425 shares of common stock in the form of restricted stock units (RSUs).
• These RSUs were approved and granted by the Issuer's Board on September 16, 2024.
• The RSUs are subject to the effectiveness of the Issuer's registration statement on Form S-8, which was filed with the SEC on September 18, 2024.
• Each RSU represents the right to receive one share of Stardust Power's common stock.
• The RSUs vest subject to Cornett's continued service on the Issuer's board through the 2025 annual general meeting or June 15, 2025, whichever is earlier.
• A Power of Attorney was executed on September 11, 2024, appointing Roshen Pujari and Udaychandra Devasper as attorneys-in-fact for Section 13 and 16 reporting obligations.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The grant of RSUs indicates confidence in the company's future and aligns the director's interests with shareholders. There are no immediate negative implications.

Positives

• The grant of RSUs aligns the director's interests with the company's long-term performance, incentivizing continued service and contribution to Stardust Power.

Risks

• The vesting of the RSUs is contingent on continued service, creating a potential risk if the director were to leave the board before the vesting date.

Future Outlook

The director's continued service on the board is tied to the vesting of the RSUs, suggesting an expectation of ongoing involvement with Stardust Power.

Industry Context

Grants of restricted stock units are a common practice to align the interests of company directors with those of shareholders, particularly in growth-oriented companies.

Comparison to Industry Standards

• RSU grants are a standard form of executive compensation, comparable to grants at companies like Tesla, where directors receive stock options and RSUs as part of their compensation packages.
• The vesting schedule tied to continued service is also a common practice, similar to arrangements at companies like Rivian, where executive compensation includes performance-based equity awards.

Stakeholder Impact

• Shareholders may view the RSU grant positively as it aligns the director's interests with the company's success.
• Employees may see this as a sign of stability and commitment from the board.

Next Steps

• The director must continue to serve on the board to fulfill the vesting requirements of the RSUs.
• The company needs to ensure the Form S-8 registration statement becomes effective for the RSUs to be fully granted.

Key Dates