Form 4: Tutor Perini CEO Ronald Tutor Granted 458,795 Cash-Settled Phantom Stock Units

Ronald N. Tutor, Chairman & CEO of Tutor Perini Corporation, was granted 458,795 cash-settled phantom stock units on March 13, 2024, vesting over the next three years contingent upon continued employment.

Summary

• On March 15, 2024, a Form 4 filing was submitted to the SEC regarding Ronald N. Tutor, the Chairman & CEO of Tutor Perini Corporation.
• The filing reports that on March 13, 2024, Mr. Tutor was granted 458,795 cash-settled phantom stock units.
• These units vest in three tranches: 152,932 units each on March 13, 2025 and 2026, and 152,931 units on December 31, 2026.
• Vesting is contingent upon Mr. Tutor's continued employment with Tutor Perini Corporation through each applicable vesting date.
• The phantom stock units will be settled in cash based on the closing price of Tutor Perini Corporation's common stock on the vesting date.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The granting of phantom stock units is a standard practice that aligns management's interests with shareholders. The vesting schedule encourages long-term commitment.

Positives

• The grant of phantom stock units to the CEO aligns his interests with the long-term performance of the company.
• The vesting schedule incentivizes continued employment and commitment from the CEO.

Risks

• The value of the phantom stock units is tied to the performance of Tutor Perini Corporation's common stock, which can be subject to market fluctuations.
• The vesting of the units is contingent upon continued employment, creating a potential risk if the CEO were to leave the company before the vesting dates.

Future Outlook

The phantom stock units vest over the next three years, contingent upon the reporting person's continued employment.

Industry Context

Granting stock options and phantom stock units is a common practice in executive compensation to align management's interests with those of shareholders. The specific terms of the grant, such as the vesting schedule and settlement method, can vary depending on the company's specific goals and circumstances.

Comparison to Industry Standards

• Executive compensation packages, including phantom stock grants, are common in the construction industry among companies of similar size and scope to Tutor Perini.
• Companies like Fluor Corporation and AECOM also utilize stock-based compensation to incentivize their executives.
• The vesting schedules and the number of units granted are generally benchmarked against industry peers to ensure competitiveness and alignment with performance goals.

Stakeholder Impact

• Shareholders may view the grant of phantom stock units positively as it aligns the CEO's interests with the company's long-term success.
• Employees may see this as a positive sign of the company's commitment to its leadership.

Key Dates