Form 4: Tetra Technologies VP-Finance Acquires Restricted Stock Units in Lieu of Cash Bonus

Richard D. O'Brien, VP-Finance & Global Controller of Tetra Technologies, acquired 9,122 restricted stock units (RSUs) on March 15, 2024, as settlement for a portion of his 2023 annual bonus.

Summary

• Richard D. O'Brien, VP-Finance & Global Controller of Tetra Technologies, acquired 9,122 restricted stock units (RSUs) on March 15, 2024.
• These RSUs were granted as settlement for a portion of his 2023 annual bonus, instead of cash.
• The RSUs were granted pursuant to the TETRA Technologies, Inc. Second Amended and Restated 2018 Equity Incentive Plan.
• 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.
• 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.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The acquisition of RSUs by a key executive is generally a positive sign, indicating alignment with the company's long-term performance. However, the potential for cash settlement of the RSUs introduces a slight element of uncertainty.

Positives

• The acquisition of RSUs by a key executive demonstrates alignment with the company's long-term performance.
• The election to receive RSUs instead of cash may indicate confidence in the company's future prospects.
• The vesting schedule incentivizes continued service and commitment from the executive.

Risks

• The value of the RSUs is subject to the fluctuations in the price of Tetra Technologies' common stock.
• The Issuer has the discretion to settle the RSUs in cash, which could dilute shareholder value if new shares are issued.
• The vesting of the RSUs is contingent upon continued service, creating a potential risk if the executive leaves the company before the vesting date.

Future Outlook

The document does not contain specific forward-looking statements, but the vesting of the RSUs on March 15, 2025, is contingent upon continued service.

Management Comments

• The RSU was granted pursuant to the TETRA Technologies, Inc. Second Amended and Restated 2018 Equity Incentive Plan.
• Upon the Reporting Person's election, a portion of the annual bonus earned by the Reporting Person for the 2023 performance year was settled in restricted stock units ('RSUs') rather than cash.

Industry Context

The granting of RSUs is a common practice in executive compensation packages to align management's interests with those of shareholders. This is especially common in the energy and technology sectors, where Tetra Technologies operates.

Comparison to Industry Standards

• Granting RSUs as part of executive compensation is a standard practice across many industries, including oil and gas services.
• Companies like Halliburton and Schlumberger also use equity-based compensation to incentivize their executives.
• The vesting schedule of one year is relatively short compared to some companies that use multi-year vesting schedules to ensure long-term commitment.

Stakeholder Impact

• Shareholders may view the RSU grant as a positive sign of alignment between management and shareholder interests.
• Employees may see the RSU grant as a sign of the company's commitment to rewarding performance.
• The potential for cash settlement of the RSUs could dilute shareholder value if new shares are issued.

Key Dates