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

Jacek M. Mucha, VP of Finance and Treasurer at Tetra Technologies, acquired 8,935 restricted stock units (RSUs) on March 15, 2024, as part of his 2023 performance year bonus.

Summary

• On March 15, 2024, Jacek M. Mucha, the VP of Finance and Treasurer of Tetra Technologies Inc., acquired 8,935 restricted stock units (RSUs).
• These RSUs were granted as a portion of his annual bonus for the 2023 performance year, settled in RSUs instead of cash at his election.
• The RSUs were granted under 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 grant date was $4.27.
• The RSUs will vest 100% on March 15, 2025, contingent upon continued service.
• Vested shares will be delivered on the settlement date, unless Tetra Technologies elects to settle the RSUs in cash, or a combination of shares and cash, at its discretion.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The granting of RSUs is a standard practice, and the executive's acceptance of RSUs in lieu of cash suggests confidence in the company's future performance.

Positives

• The acquisition of RSUs by a key executive demonstrates alignment with the company's long-term performance.
• Settling a portion of the bonus in RSUs conserves the company's cash.

Risks

• The value of the RSUs is subject to the volatility of Tetra Technologies' stock price.
• The executive must remain employed with the company until the vesting date to receive the shares.

Future Outlook

The RSUs will vest on March 15, 2025, subject to continued service, and will be settled in shares or cash at the company's discretion.

Management Comments

• 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

Equity compensation is a common practice in the energy and technology industries to incentivize executives and align their interests with those of shareholders.

Comparison to Industry Standards

• Many companies in the oil and gas services sector, such as Halliburton and Schlumberger, use a mix of cash and equity-based compensation for their executives.
• The vesting schedule of the RSUs (100% on March 15, 2025) is fairly standard for executive equity grants.

Stakeholder Impact

• Shareholders may view the RSU grant positively as it aligns executive interests with long-term company performance.
• Employees may see the RSU grant as a positive sign of the company's commitment to rewarding performance.

Key Dates