Form 4: Stoneridge Inc. Executive Granted Share Units and Phantom Shares Under Long-Term Incentive Plan

Caetano Roberto Ferraiolo, President of Stoneridge Brazil, received share units and phantom shares under the company's Long-Term Incentive Plan.

Summary

• Caetano Roberto Ferraiolo, President of Stoneridge Brazil, reported changes in beneficial ownership to the SEC on March 12, 2025.
• The report details the granting of 15,944 share units and phantom shares under Stoneridge's Long-Term Incentive Plan on March 10, 2025.
• The share units are payable in company common shares on a one-for-one basis if Ferraiolo remains employed until March 1, 2028.
• The phantom shares will be paid in cash equal to the fair market value of one company common share if Ferraiolo remains employed until June 20, 2025.
• Ferraiolo directly owns 9,372 common shares and 26,705 share units following the reported transactions.
• Ferraiolo also directly owns 14,551 phantom shares.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating a positive alignment of interests between management and shareholders. The sentiment is neutral to slightly positive.

Positives

• The granting of share units and phantom shares aligns the executive's interests with the long-term performance of the company.
• The vesting conditions (continued employment) incentivize the executive to remain with the company.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting conditions of the granted share units and phantom shares.

Industry Context

Granting stock-based compensation is a common practice in the industry to incentivize executives and align their interests with shareholders.

Comparison to Industry Standards

• Stock-based compensation is a common practice among publicly traded companies to align executive compensation with shareholder value.
• Companies like Visteon, Aptiv, and Magna International also utilize similar long-term incentive plans involving restricted stock units and performance-based awards.
• The specific terms and conditions of these plans, such as vesting schedules and performance metrics, vary depending on the company's size, industry, and strategic goals.

Stakeholder Impact

• Shareholders may view the granting of share units and phantom shares positively as it incentivizes executive performance.
• Employees may see this as a positive sign of investment in leadership.

Key Dates