Form 4: Vulcan Materials Senior Vice President Acquires Performance Share Units, Restricted Stock Units, and Stock Appreciation Rights

David P. Clement, Senior Vice President of Vulcan Materials, reports acquisition of performance share units, restricted stock units, and stock appreciation rights.

Summary

• David P. Clement, a Senior Vice President at Vulcan Materials CO, filed a Form 4 detailing changes in his beneficial ownership of company securities.
• On February 20, 2025, Clement acquired 2,790 Performance Share Units, 930 Restricted Stock Units, 2,230 Stock Appreciation Rights, and 5,955 Restricted Stock Units as a special retention grant.
• The Performance Share Units vest on December 31, 2027, with payment based on company performance relative to the S&P 500 and cash gross profit per ton growth.
• The Restricted Stock Units cliff vest on February 20, 2028, and December 1, 2026, respectively, and are settled in shares of Vulcan Common Stock.
• The Stock Appreciation Right vests in three equal annual installments beginning on February 20, 2025, and expires on February 20, 2035.
• All acquisitions were direct and the price for each derivative security was $0.00, except for the Stock Appreciation Right which had an exercise price of $258.59.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, indicating stability and alignment of management with company goals. The sentiment is neutral to slightly positive.

Positives

• The acquisition of Performance Share Units is tied to company performance relative to the S&P 500 and cash gross profit per ton growth, aligning Clement's interests with shareholders.
• The vesting schedules of the Restricted Stock Units and Stock Appreciation Rights incentivize Clement's continued service with the company.

Future Outlook

The document does not contain specific forward-looking statements, but the vesting schedules of the acquired securities suggest an expectation of continued service and performance from the reporting person.

Industry Context

This filing is a routine disclosure of executive compensation and equity awards, common in publicly traded companies to align management interests with shareholder value. Vulcan Materials, as a member of the S&P 500, is likely benchmarked against its peers in the construction materials industry regarding executive compensation practices.

Comparison to Industry Standards

• Equity compensation is a standard practice among S&P 500 companies to incentivize executives.
• Companies like Martin Marietta Materials and Summit Materials also utilize performance-based equity awards.
• The specific vesting schedules and performance metrics (S&P 500 performance and cash gross profit per ton growth) are tailored to Vulcan Materials' strategic goals.

Stakeholder Impact

• The equity awards align management's interests with shareholders, potentially driving long-term value creation.
• The vesting schedules incentivize continued service from a key executive.

Key Dates