Form 4: STEM Inc. Executive Michael Carlson Receives Equity Awards

Michael James Carlson, President of Managed Services & OEM Hardware at STEM, Inc., was granted 20,000 equity awards consisting of Restricted Stock Units and Performance Stock Units.

Summary

• Michael James Carlson, an officer of STEM, Inc. holding the title of President, Managed Services & OEM Hardware, was granted equity awards.
• On July 28, 2025, Carlson was granted 10,000 Restricted Stock Units (RSUs).
• These RSUs will vest in three nearly equal annual installments (33%, 33%, 34%), with the first vesting occurring on August 7, 2026.
• Also on July 28, 2025, Carlson was granted 10,000 Performance Stock Units (PSUs).
• A portion of these PSUs will vest if the volume-weighted average price of STEM, Inc.'s common stock for any consecutive sixty (60) trading-day period equals or exceeds a specified stock price target.
• Each RSU and PSU represents a contingent right to receive one share of the Issuer's common stock.
• The transaction price for both the RSU and PSU grants was $0.

Sentiment

Score: 6

Explanation: The grant of equity awards to a key executive is generally viewed positively as it aligns management's interests with shareholder value creation, though it's a routine compensation event and not indicative of extraordinary performance or issues.

Positives

• The grant of equity awards aligns the executive's financial interests with the long-term performance and shareholder value creation of STEM, Inc.
• Equity grants are a common tool for executive retention and motivation, encouraging sustained performance.

Risks

• The value of the granted RSUs and PSUs is contingent on the future performance of STEM, Inc.'s common stock, meaning the actual realized value could be lower than the potential value if stock price declines.
• PSUs are subject to specific stock price targets, and if these targets are not met, the executive may not receive the full intended compensation from these units.

Future Outlook

The equity grants are forward-looking, designed to incentivize the executive's performance and retention, with vesting tied to future time-based schedules and stock price targets, aligning compensation with the company's future success.

Industry Context

The grant of Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) is a standard practice in executive compensation across various industries, particularly in technology and energy sectors like STEM, Inc., to attract, retain, and motivate key personnel.

Comparison to Industry Standards

• The use of RSUs and PSUs as a form of executive compensation is a widely adopted practice across publicly traded companies, including those in the energy technology and software sectors.
• This compensation structure is comparable to those offered by companies like Enphase Energy, SolarEdge Technologies, or Generac Holdings, which also utilize performance-based and time-based equity awards to align executive incentives with shareholder returns.
• The vesting schedules, including multi-year time-based vesting for RSUs and performance-based vesting for PSUs tied to stock price targets, are consistent with industry benchmarks for executive long-term incentive plans.

Related Party Transactions

• The equity grants to Michael James Carlson, an officer of STEM, Inc., constitute a related party transaction as they involve compensation provided by the company to an insider.

Stakeholder Impact

• Shareholders: The equity grants aim to align the executive's interests with those of shareholders by tying a portion of their compensation to the company's stock performance.
• Employees: While not directly impacting all employees, executive compensation practices can influence overall company culture and compensation philosophy.
• Executive (Michael James Carlson): The grants provide a significant component of long-term incentive compensation, contingent on company performance and continued employment.

Next Steps

• The granted Restricted Stock Units (RSUs) will begin vesting in three nearly equal annual installments starting August 7, 2026.
• The Performance Stock Units (PSUs) will vest based on the achievement of specific stock price targets over a 60-trading-day period.

Key Dates

Keywords

STEM, equity compensation, Restricted Stock Units, Performance Stock Units, insider transaction, executive compensation, stock grant, Form 4