Form 4: USA Compression Partners CEO Receives Stock and Cash Unit Awards

USA Compression Partners CEO, Micah Clint Green, was granted 84,270 restricted common units and 28,090 cash units as part of a long-term incentive plan.

Summary

• Micah Clint Green, CEO of USA Compression Partners, received 84,270 restricted common units on December 5, 2024.
• These restricted units will vest 60% on December 5, 2027, and 40% on December 5, 2029, contingent on continued employment.
• Green also received 28,090 cash units on the same date.
• These cash units will vest in three equal installments on December 5, 2025, December 5, 2026, and December 5, 2027, also contingent on continued employment.
• The cash units will be settled in cash based on the average closing price of common units in the ten trading days before each vesting date.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which is generally positive for aligning management with shareholder interests. There are no negative aspects or surprises in the document.

Positives

• The long-term incentive plan aligns the CEO's interests with the long-term performance of the company.
• The vesting schedule encourages continued employment and commitment from the CEO.
• The use of both restricted stock and cash units provides a balanced incentive structure.

Risks

• The vesting of the awards is contingent on continued employment, which could be a risk if the CEO were to leave the company before the vesting dates.

Future Outlook

The document outlines the vesting schedule for the awarded units, indicating future dates when the CEO will receive the benefits of these awards, contingent on continued employment.

Management Comments

• The Reporting Person is the President and Chief Executive Officer of USA Compression GP, LLC, the general partner of the Issuer.
• The Issuer is managed by the directors and executive officers of the General Partner.

Industry Context

This type of equity and cash-based compensation is common for executives in publicly traded companies, particularly in the energy sector, to align their interests with shareholders and incentivize long-term performance.

Comparison to Industry Standards

• Many energy companies use a mix of restricted stock and cash-based incentives for executive compensation.
• Vesting schedules of 3-5 years are typical for long-term incentive plans.
• Companies like Enterprise Products Partners (EPD) and Kinder Morgan (KMI) also use similar long-term incentive plans for their executives.

Stakeholder Impact

• Shareholders may view this as a positive sign that the CEO is incentivized to improve the company's long-term performance.
• Employees may see this as a standard practice for executive compensation.

Key Dates

Keywords

USA Compression Partners, Incentive Plan, Restricted Units, Cash Units, Micah Clint Green, Executive Compensation, Vesting, Long-Term Incentive