Form 4: TETRA TECH EVP Hopson Reports Significant Stock Vesting

TETRA TECH's EVP, Chief Legal/Human Capital, Preston Hopson, reported the vesting of restricted stock units and performance stock units, alongside related tax withholdings.

Summary

• Preston Hopson, EVP, Chief Legal/Human Capital of Tetra Tech Inc. (TTEK), reported multiple transactions on November 18, 2025.
• Acquired 2,055 shares of common stock from the vesting of restricted stock units (RSUs).
• Acquired an additional 2,535 shares of common stock from the vesting of other restricted stock units.
• Acquired 21,902 shares of common stock from the vesting of performance stock units earned under the 2018 Equity Incentive Plan.
• Disposed of 1,807 shares of common stock at $35.69 to cover tax liabilities related to the RSU vesting.
• Disposed of 8,620 shares of common stock at $35.69 to cover tax liabilities related to the performance stock unit vesting.
• Beneficial ownership of common stock after these transactions is 79,996 shares.
• An earlier update noted the acquisition of 149 shares on December 15, 2024, through the Tetra Tech, Inc. Employee Stock Purchase Plan (ESPP).

Sentiment

Score: 7

Explanation: The filing details the vesting of equity awards and subsequent tax-related dispositions, which are standard and expected events in executive compensation. The significant number of shares acquired through vesting is positive for the executive and reflects the company's performance, while the tax sales are a routine part of the process.

Positives

• Significant acquisition of 26,492 shares (2,055 + 2,535 + 21,902) of common stock through the vesting of restricted stock units and performance stock units, indicating successful achievement of performance targets and long-term incentive realization.
• The reporting person's beneficial ownership remains substantial at 79,996 shares, demonstrating continued alignment with shareholder interests.
• Acquisition of 149 shares via the Employee Stock Purchase Plan (ESPP) on December 15, 2024, shows ongoing participation in employee stock programs.

Negatives

• Disposition of 1,807 shares and 8,620 shares (total 10,427 shares) to cover tax liabilities, which is a common practice but reduces direct ownership.

Future Outlook

The filing indicates future vesting events for Restricted Stock Units, with 25% vesting annually until fully vested for grants made in 2022 and 2023, suggesting ongoing long-term incentive alignment.

Industry Context

This Form 4 filing reflects routine executive compensation practices common across publicly traded companies, where long-term incentives like Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) are used to align executive interests with shareholder value creation. The vesting and subsequent tax-related dispositions are standard procedures in such compensation structures.

Related Party Transactions

• The transactions involve the acquisition of company stock by an executive officer (Preston Hopson) through equity incentive plans and an employee stock purchase plan, which are considered related party transactions in the context of executive compensation.

Stakeholder Impact

• Shareholders: The vesting of performance-based awards suggests that company performance targets were met, which is generally positive. The executive's continued significant ownership aligns their interests with shareholders.
• Employees: The mention of the Employee Stock Purchase Plan (ESPP) indicates opportunities for broader employee participation in company ownership.

Next Steps

• Continued annual vesting of remaining Restricted Stock Units (RSUs) for grants made in 2022 and 2023, at 25% annually until fully vested.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation events, specifically the vesting of restricted stock units and performance stock units, along with associated tax withholdings. These transactions are expected and do not provide new fundamental information about the company's operational performance or strategic direction that would warrant a change in investment recommendation. The executive's continued significant beneficial ownership is a neutral to slightly positive signal of alignment.

Keywords

TETRA TECH, TTEK, Form 4, Insider Transaction, Stock Vesting, Restricted Stock Units, Performance Stock Units, Employee Stock Purchase Plan, Executive Compensation, Preston Hopson