Form 4: Terex Corp Executive Amy George Reports Changes in Beneficial Ownership

Senior Vice President of Human Resources at Terex Corp, Amy George, reports acquisition and disposal of company stock due to tax liabilities and long-term incentive plans.

Summary

• On March 15, 2024, Amy George, Senior VP of Human Resources at Terex Corp, reported changes in beneficial ownership of Terex Corp [TEX] stock.
• 604 shares were disposed of at $58.35 to cover tax liabilities associated with vesting restricted stock awards.
• 3,301 shares were granted under a long-term incentive plan tied to the company's total shareholder return (TSR) over the period January 1, 2024 December 31, 2026, vesting in the first quarter of 2027.
• Another 3,301 shares were granted under a long-term incentive plan tied to the company's return on invested capital (ROIC) in 2024, 2025, and 2026, vesting in the first quarter of 2027.
• An additional 3,555 shares were granted under a long-term incentive plan, vesting in three equal installments on March 15, 2025, March 15, 2026, and March 15, 2027.
• On March 18, 2024, 695 shares were disposed of at $59.07 to cover tax liabilities associated with vesting restricted stock awards.
• Following these transactions, Amy George directly owns 104,109 shares of Terex Corp stock and indirectly owns 14 shares through a 401(k) plan.

Sentiment

Score: 6

Explanation: The document primarily reflects routine transactions related to executive compensation. The use of performance-based incentives is generally viewed positively, but the document itself doesn't offer strong positive or negative signals.

Positives

• The granting of shares under long-term incentive plans aligns executive compensation with company performance metrics like TSR and ROIC, potentially driving long-term value creation.

Risks

• The number of shares granted under the TSR and ROIC-based incentive plans are subject to adjustment based on the company's performance against targeted metrics, introducing uncertainty in the final payout.

Future Outlook

The vesting of shares under the long-term incentive plans is contingent upon the company achieving targeted TSR and ROIC performance, aligning executive compensation with future company success.

Industry Context

Executive stock ownership and incentive plans are common practices in publicly traded companies to align management interests with shareholder value. The use of TSR and ROIC as performance metrics is also typical in the industry.

Comparison to Industry Standards

• Companies like Caterpillar (CAT) and Deere & Company (DE) also utilize long-term incentive plans with performance-based metrics such as TSR and ROIC to incentivize their executives.
• The vesting schedules and performance targets for these plans are often benchmarked against industry peers to ensure competitiveness and alignment with shareholder interests.
• The specific TSR and ROIC targets for Terex Corp's incentive plans would need to be compared to those of its peers to assess their relative difficulty and potential impact on executive compensation.

Stakeholder Impact

• Shareholders may view the long-term incentive plans positively, as they align executive compensation with company performance and shareholder returns.
• Employees may be motivated by the potential for increased stock ownership through incentive plans.

Key Dates