Form 4: Tetra Technologies CFO Settles Annual Bonus in Restricted Stock Units

Elijio V. Serrano, Sr. Vice President & CFO of Tetra Technologies, Inc., elected to receive his 2023 annual bonus in restricted stock units (RSUs) rather than cash.

Summary

• On March 15, 2024, Elijio V. Serrano, Sr. Vice President & CFO of Tetra Technologies, Inc., was granted 106,998 restricted stock units (RSUs).
• These RSUs represent the settlement of his 2023 annual bonus, which he elected to receive in stock units instead of cash.
• Each RSU represents the contingent right to receive one share of Tetra Technologies' common stock upon vesting.
• The closing price of Tetra Technologies' common stock on the date of the RSU award was $4.27.
• The RSUs were granted under the Tetra Technologies, Inc. Second Amended and Restated 2018 Equity Incentive Plan.
• One hundred percent of the award will vest on March 15, 2025, subject to continued service on the vesting date.
• Vested shares will be delivered to the reporting person on the settlement date unless the Issuer elects to settle the RSUs in cash, or a combination of shares and cash, in the Issuer's sole discretion.
• Following the transaction, Serrano directly owns 106,998 derivative securities.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a standard executive compensation practice that aligns management interests with shareholders. The CFO taking bonus in stock is a good sign.

Positives

• The CFO's decision to take his bonus in stock aligns his interests with those of shareholders.
• The vesting period encourages continued service and commitment from the CFO.

Future Outlook

The RSUs will vest on March 15, 2025, subject to continued service. The issuer has the discretion to settle the RSUs in cash, shares, or a combination of both.

Industry Context

This is a routine disclosure of an insider transaction, specifically the granting of restricted stock units as part of executive compensation. It's common for companies to use equity-based compensation to incentivize executives and align their interests with shareholders.

Comparison to Industry Standards

• Equity compensation is a standard practice across the oil and gas industry, with companies like Halliburton, Schlumberger, and Baker Hughes using similar methods to incentivize their executives.
• The vesting schedule of one year is relatively standard, aligning with typical performance evaluation cycles.
• The option for the company to settle in cash or stock provides flexibility, similar to practices seen at comparable firms.

Stakeholder Impact

• Shareholders may view the CFO's decision to take his bonus in stock as a positive sign, aligning his interests with theirs.
• Employees may see this as a standard compensation practice for executives.

Key Dates