Form 4: Valvoline Chief Legal Officer Reports Stock Transactions Following Vesting of Performance Stock Units

Valvoline's Chief Legal Officer, Julie Marie O'Daniel, reported the acquisition and disposal of company stock following the vesting of performance stock units and restricted stock units.

Summary

• Julie Marie O'Daniel, Valvoline's Chief Legal Officer, reported several transactions involving Valvoline common stock.
• On November 11, 2024, she acquired 983 shares of common stock through the vesting of restricted stock units and disposed of 306 shares to cover tax obligations at a price of $43.24 per share.
• On November 12, 2024, she acquired 7,360 shares of common stock from the vesting of performance stock units and disposed of 2,289 shares to cover tax obligations at a price of $42.61 per share.
• The performance stock units were earned based on the company's adjusted EPS/adjusted Net Income performance over three years and relative total shareholder return, resulting in a payout of 132.6% of the target.
• Following these transactions, Ms. O'Daniel directly owns 19,792 shares of Valvoline common stock and indirectly owns 3,037 shares through the company's 401(k) plan.

Sentiment

Score: 7

Explanation: The document reflects a positive outcome for the executive due to the vesting of performance-based equity, indicating that the company met its performance goals. The transactions are routine and expected.

Positives

• The vesting of performance stock units indicates that the company met certain performance goals.
• The 132.6% payout of the target for performance stock units suggests strong performance relative to the set goals.

Industry Context

This filing is a routine disclosure of stock transactions by a company executive, which is common practice in publicly traded companies. It reflects the compensation structure and performance-based incentives for executives.

Comparison to Industry Standards

• The vesting of performance stock units based on adjusted EPS/adjusted Net Income and total shareholder return is a common practice among publicly traded companies, including Valvoline's peers in the S&P MidCap 400 Index.
• The payout of 132.6% of target suggests that Valvoline's performance was above average compared to the goals set by the compensation committee.
• Companies like O'Reilly Automotive and AutoZone also use similar performance-based equity compensation for their executives.

Stakeholder Impact

• The vesting of performance stock units and subsequent stock transactions have a minor impact on shareholders as it is a routine part of executive compensation.
• The transactions do not have a significant impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

Valvoline, stock transactions, performance stock units, restricted stock units, insider trading, Form 4, equity compensation, executive compensation