Form 4: Valero CFO Bhullar Receives Restricted Stock, Performance Shares

Valero Energy Corp's SVP & CFO, Harminder S. Bhullar, reported the acquisition of restricted stock and performance shares, alongside the disposition of shares for tax obligations.

Summary

• SVP & CFO Harminder S. Bhullar acquired 7,050 shares of Valero Energy Corp common stock as restricted stock, subject to time vesting, on February 25, 2026, at a price of $0.
• Bhullar also acquired 7,050 performance shares on February 25, 2026, which vest annually in one-third increments starting January 2027 and are payable in common stock, ranging from zero to 200 percent of the performance shares.
• On February 26, 2026, Bhullar disposed of 480 shares and 529 shares of common stock, totaling 1,009 shares, at a price of $201.435 per share. These dispositions were to satisfy tax obligations related to the vesting of previous restricted stock awards.
• Following these transactions, Bhullar beneficially owns 28,599 shares of common stock directly and 7,050 performance shares.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a routine, slightly positive event, reflecting ongoing executive compensation and alignment of interests, with no significant new information impacting the company's fundamentals.

Positives

• The SVP & CFO received a significant award of 7,050 restricted shares and 7,050 performance shares, indicating continued alignment of management's interests with shareholders.
• The performance shares have a potential payout ranging up to 200% of the awarded shares, offering upside based on company performance.

Negatives

• A total of 1,009 shares were disposed of to cover tax obligations, which is a common practice but represents a reduction in direct ownership.

Risks

• The performance shares' actual payout can range from zero to 200 percent, meaning the final number of shares received is contingent on future performance metrics, introducing variability.

Future Outlook

The performance shares are scheduled to vest annually in one-third increments starting in January 2027, with payouts in common stock contingent on performance metrics.

Industry Context

StockSavvy.ai notes that executive compensation packages frequently include restricted stock and performance-based awards to align management incentives with long-term shareholder value creation. The disposition of shares for tax withholding is a standard practice upon the vesting of such awards.

Stakeholder Impact

• Shareholders: Continued alignment of executive incentives with company performance.
• Management: Receipt of equity compensation, subject to vesting and performance.

Next Steps

• Performance shares will begin vesting annually in one-third increments starting January 2027.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation and tax-related share dispositions. It does not provide new fundamental information about Valero Energy Corp's operations, financial performance, or strategic direction that would warrant a change in investment recommendation. The transactions are expected and reflect standard corporate governance practices.

Keywords

Valero Energy, VLO, Harminder S. Bhullar, SVP & CFO, insider trading, Form 4, restricted stock, performance shares, executive compensation, beneficial ownership