Form 4: Stoneridge Inc. Executive Receives Share Units Under Long-Term Incentive Plan

Robert J. Hartman Jr., Chief Accounting Officer of Stoneridge Inc., was granted 3,427 share units under the company's Long-Term Incentive Plan.

Summary

• Robert J. Hartman Jr., the Chief Accounting Officer of Stoneridge Inc., received 3,427 share units on March 11, 2024, under the company's Long-Term Incentive Plan.
• These share units are payable on a one-for-one basis in Stoneridge Inc. common shares, contingent upon Hartman's continued employment until March 1, 2027.
• Following this transaction, Hartman directly owns 34,217 common shares and 8,386 share units.

Sentiment

Score: 7

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

Positives

• The grant of share units aligns the executive's interests with the long-term performance of the company.
• The vesting condition of continued employment until March 1, 2027, incentivizes retention of key personnel.

Risks

• The value of the share units is dependent on the future performance of Stoneridge Inc.'s common stock.
• If Hartman leaves the company before March 1, 2027, he will forfeit the share units.

Future Outlook

The share units will convert to common shares if the Reporting Person remains employed on March 1, 2027.

Industry Context

Granting share units as part of a long-term incentive plan is a common practice among publicly traded companies to align executive compensation with shareholder value and encourage long-term commitment.

Comparison to Industry Standards

• Many companies in the automotive and technology sectors, such as Aptiv, Magna International, and TE Connectivity, utilize similar long-term incentive plans that include stock options, restricted stock units, or performance-based awards.
• These plans typically have vesting periods of 3-5 years and are contingent upon continued employment and/or the achievement of specific performance targets.
• The size of the grant is generally determined based on the executive's role, responsibilities, and contribution to the company's success.

Stakeholder Impact

• Shareholders may view the long-term incentive plan as a positive mechanism for aligning management's interests with shareholder value.
• Employees may see the plan as a sign of the company's commitment to rewarding and retaining key personnel.

Key Dates