Form 4: Target Hospitality CFO Jason Vlacich Reports Stock Transactions Following PSU Vesting

CFO Jason Vlacich reports acquisition and disposal of Target Hospitality Corp. stock related to performance stock unit (PSU) vesting and tax obligations.

Summary

• On February 24, 2025, Jason Vlacich, CFO & CAO of Target Hospitality Corp., reported transactions involving the company's common stock.
• These transactions are related to the vesting of performance stock units (PSUs) granted on February 24, 2022, under the company's 2019 Incentive Award Plan.
• The PSUs vested at 150% of the target level, resulting in the acquisition of 24,916 shares.
• Vlacich also acquired 12,459 shares through the vesting of restricted stock units (RSUs).
• Additionally, 9,100 shares were disposed of to cover tax liabilities associated with the vesting of the PSUs and RSUs at a price of $5.05.
• Following these transactions, Vlacich directly owns 83,465 shares of Target Hospitality Corp.
• Vlacich also holds 57,784 unvested RSUs from grants in 2022, 2023 and 2024.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. The vesting of PSUs at 150% suggests strong performance, but the tax-related disposal of shares is a neutral event.

Positives

• The vesting of PSUs at 150% suggests that the company exceeded its performance targets related to cumulative operating cash flow from January 1, 2022, through December 31, 2024.

Negatives

• The disposal of 9,100 shares to cover tax liabilities, while a normal occurrence, slightly reduces Vlacich's direct holdings in the company.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. The vesting of PSUs indicates that the company met or exceeded certain performance criteria, which is generally viewed positively.

Comparison to Industry Standards

• Form 4 filings are standard practice across publicly traded companies, including competitors in the lodging and accommodations sector such as Wyndham Hotels & Resorts and Marriott International.
• The vesting of PSUs based on operating cash flow is a common performance metric used in executive compensation plans across various industries.
• The tax-related disposal of shares is a typical occurrence when equity awards vest, aligning with standard tax practices for employee compensation.

Stakeholder Impact

• Shareholders may view the PSU vesting positively, as it indicates the company achieved strong operating cash flow performance.
• Employees holding similar equity awards may be encouraged by the PSU vesting outcome.

Key Dates