Form 4: Terex Corp Executive Joshua Gross Reports Changes in Beneficial Ownership
SEC Form 4 Filing
Joshua Gross, President of Genie at Terex Corp, reports acquisition and disposal of common stock due to tax withholding and long-term incentive plan grants.
Summary
- On March 15, 2024, Joshua Gross, President of Genie at Terex Corp, reported the withholding of 353 shares of common stock at $58.35 for tax liabilities related to vesting restricted stock awards.
- On the same date, he acquired 4,016 shares related to a long-term incentive plan tied to total shareholder return (TSR) vesting in Q1 2027.
- Another 4,016 shares were granted related to a long-term incentive plan tied to return on invested capital (ROIC) vesting in Q1 2027.
- Additionally, 4,325 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, 446 shares were withheld at $59.07 for tax liabilities.
- Following these transactions, Gross directly owns 26,371 shares of Terex Corp common stock.
Sentiment
Score: 6
Explanation: The document primarily reflects routine executive stock transactions related to compensation and incentive plans. The sentiment is neutral, with a slight positive bias due to the granting of performance-based stock awards.
Positives
- The granting of shares under long-term incentive plans tied to TSR and ROIC suggests a focus on long-term value creation for shareholders.
- The vesting schedules for the incentive plans are multi-year, aligning management's interests with the long-term performance of the company.
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 targeted metrics, which introduces uncertainty.
Future Outlook
The document outlines future vesting dates for restricted stock awards and long-term incentive plans, indicating a continued focus on aligning executive compensation with company performance.
Industry Context
Executive stock transactions are a common occurrence in publicly traded companies and are often tied to compensation packages and incentive plans. These transactions can provide insights into management's confidence in the company's future performance.
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 align executive compensation with shareholder value creation.
- The vesting schedules and performance metrics used by Terex are generally in line with industry practices for executive compensation.
Stakeholder Impact
- The granting of performance-based stock awards aims to align management's interests with those of shareholders, potentially leading to increased shareholder value.
- The vesting schedules for the incentive plans may incentivize management to focus on long-term sustainable growth.
Key Dates
| Date | Description |
|---|---|
| 03/15/2024 | Withholding of shares for tax liability, grant of shares under TSR and ROIC based incentive plans, and grant of shares under a time-based vesting incentive plan. |
| 03/18/2024 | Withholding of shares for tax liability. |
| 03/19/2024 | Date of signature by power of attorney. |
| March 15, 2025 | First vesting date for 1/3 of the 4,325 shares granted under the time-based vesting incentive plan. |
| March 15, 2026 | Second vesting date for 1/3 of the 4,325 shares granted under the time-based vesting incentive plan. |
| December 31, 2026 | End date for the three-year period used to calculate the TSR for the long-term incentive plan. |
| Q1 2027 | Scheduled vesting date for shares granted under the TSR and ROIC based long-term incentive plans. |
| March 15, 2027 | Final vesting date for 1/3 of the 4,325 shares granted under the time-based vesting incentive plan. |
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