Form 4: Terex Corp. CFO Julie A. Beck Reports Changes in Beneficial Ownership

Julie A. Beck, Senior Vice President and CFO of Terex Corporation, reports transactions involving common stock, including shares withheld for tax liabilities and grants under long-term incentive plans.

Summary

• On March 15, 2024, Julie A. Beck, CFO of Terex Corporation, had 914 shares withheld for payment of tax liability at a price of $58.35.
• On the same date, she was granted 7,703 shares under a long-term incentive plan tied to the company's total shareholder return (TSR) performance, vesting in the first quarter of 2027.
• Also on March 15, 2024, Beck received 7,703 shares under a long-term incentive plan linked to return on invested capital (ROIC), vesting in the first quarter of 2027.
• Additionally, on March 15, 2024, 8,295 shares were granted under a long-term incentive plan, vesting in three equal installments on March 15 of 2025, 2026, and 2027.
• On March 18, 2024, 1,502 shares were withheld for payment of tax liability at a price of $59.07.
• Following these transactions, Beck beneficially owns 93,445 shares of Terex Corp. common stock.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing detailing insider transactions. It doesn't contain overtly positive or negative information, but the granting of performance-based incentives suggests a degree of optimism about the company's future prospects.

Positives

• The granting of shares under long-term incentive plans aligns executive compensation with company performance, potentially incentivizing value creation for shareholders.
• The vesting of shares is tied to TSR and ROIC targets, which are key metrics for assessing company performance.

Risks

• The number of shares granted under the long-term incentive plans tied to TSR and ROIC are subject to adjustment based on the company's performance against targets, introducing uncertainty in the actual number of shares that will vest.
• Tax liabilities associated with vesting restricted stock awards can result in the withholding of shares, reducing the executive's net ownership.

Future Outlook

The document outlines future vesting schedules for restricted stock awards and performance-based incentives tied to TSR and ROIC, indicating a focus on long-term performance.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies. The use of long-term incentive plans tied to TSR and ROIC is a standard practice to align executive compensation with shareholder value creation.

Comparison to Industry Standards

• Companies like Caterpillar (CAT) and Deere & Company (DE) also utilize long-term incentive plans with performance metrics such as TSR and ROIC to incentivize their executives.
• The vesting schedules and performance periods outlined in the filing are typical for executive compensation packages in the industrial sector.
• The level of stock ownership by the CFO is within a reasonable range compared to peers in similar-sized companies.

Stakeholder Impact

• Shareholders may view the granting of performance-based incentives positively, as it aligns executive interests with shareholder value creation.
• Employees may be indirectly affected by the company's performance, as it impacts the vesting of performance-based incentives for executives.

Key Dates