Form 4: Valero Energy EVP & COO Gary K. Simmons Reports Stock Award and Tax Withholding

Gary K. Simmons, EVP & COO of Valero Energy Corp, reports the acquisition of restricted stock and performance shares, as well as shares withheld for tax obligations.

Summary

• Gary K. Simmons, EVP & COO of Valero Energy Corp, filed a Form 4 detailing changes in beneficial ownership.
• On February 26, 2025, Simmons was awarded 18,070 shares of restricted common stock subject to time vesting.
• Also on February 26, 2025, 7,111 shares were withheld to satisfy tax obligations related to restricted stock holdings at a price of $131.1999.
• Simmons also acquired 18,070 performance shares, which vest annually in one-third increments beginning in January 2026.
• The performance shares are payable in common stock, ranging from zero to 200 percent of the performance shares, as per the agreement.
• Following these transactions, Simmons directly owns 218,723 shares of common stock, excluding 12,720.612 shares held indirectly in a Thrift Plan.

Sentiment

Score: 6

Explanation: Neutral sentiment as it reflects routine executive compensation disclosures. The stock awards are a positive sign, but the tax withholding is a neutral event.

Positives

• The award of restricted stock and performance shares suggests confidence in Valero's future performance.

Negatives

• The withholding of shares to cover tax obligations reduces the immediate increase in Simmons's stock ownership.

Risks

• The value of the awarded stock is subject to market fluctuations.
• The performance shares' payout is contingent on meeting specific performance targets, with payouts ranging from 0% to 200%.

Future Outlook

The performance shares vest annually in one-third increments beginning in January 2026, payable in shares of common stock in amounts ranging from zero to 200 percent of the performance shares and as otherwise set forth in the agreement.

Industry Context

Form 4 filings are routine disclosures for corporate insiders and provide transparency into their transactions in company stock. This filing indicates compensation and alignment of executive interests with shareholders.

Comparison to Industry Standards

• Stock awards are a common form of executive compensation in the energy industry.
• Companies like ExxonMobil (XOM) and Chevron (CVX) also use stock awards and performance-based equity to incentivize their executives.
• The vesting schedules and performance metrics associated with these awards vary by company and are designed to align executive compensation with shareholder value creation.

Stakeholder Impact

• The stock awards align executive interests with shareholder value.
• The filing provides transparency to shareholders regarding executive compensation.

Key Dates

Keywords

Form 4, Valero Energy Corp, VLO, Gary K. Simmons, EVP & COO, Restricted Stock, Performance Shares, Beneficial Ownership, Tax Withholding