Form 4: Waters CEO awarded RSUs and stock options

Waters Corporation CEO Udit Batra received 5,165 RSUs and 25,283 stock options at a $319.44 exercise price, with four-year time-based vesting beginning February 25, 2027.

Summary

• On February 25, 2026, President & CEO and Director Udit Batra received 5,165 restricted stock units (RSUs) at no cost.
• RSUs vest in four equal annual installments beginning February 25, 2027, subject to continued service; each RSU converts 1:1 into common stock upon vesting and settlement.
• Also on February 25, 2026, Batra was granted stock options for 25,283 shares at an exercise price of $319.44 per share.
• The stock options vest in four equal annual installments starting February 25, 2027, and expire on February 25, 2036, subject to continued service.
• Following these grants, Batra directly beneficially owns 36,557 shares of common stock and 25,283 stock options.
• All acquisitions were coded “A” (grant), indicating no open-market purchase or sale.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as modestly positive for alignment and retention; there are no sales and the grants follow standard, shareholder-aligned structures.

Positives

• Long-term, multi-year vesting aligns CEO incentives with shareholders.
• No insider sales; equity ownership increased via grants.
• Option grant features a 10-year term and a defined exercise price of $319.44, encouraging long-term value creation.

Negatives

• Potential dilution from 5,165 RSUs and 25,283 options if and when vested/exercised.
• Awards use time-based vesting only; no performance conditions are disclosed.

Future Outlook

No forward-looking statements or financial guidance are disclosed.

Industry Context

StockSavvy.ai notes that annual, time-based equity grants with four-year vesting and 10-year option terms are standard across life science tools peers. The award structure mirrors common practices at Thermo Fisher, Agilent, Danaher, and Bruker, which typically blend RSUs and options to balance retention and performance alignment.

Comparison to Industry Standards

• Vesting schedule: Four equal annual installments align with common 3–4 year vesting norms at Thermo Fisher (TMO), Agilent (A), Danaher (DHR), and Bruker (BRKR).
• Option term: A 10-year expiration is standard among large-cap U.S. life science tools companies.
• Award mix: Combination of RSUs and stock options is consistent with peer practices that emphasize retention (RSUs) and performance upside (options).
• Exercise price: Fixed at $319.44 on the grant date, in line with typical at-the-money option grants used by sector peers.

Related Party Transactions

• Grant of 5,165 RSUs to President & CEO and Director Udit Batra on February 25, 2026.
• Grant of stock options for 25,283 shares at a $319.44 exercise price to Udit Batra on February 25, 2026.

Stakeholder Impact

• Shareholders: Slight potential dilution if RSUs vest and options are exercised; improved leadership alignment through increased equity exposure.
• Employees: Reinforces long-term incentive culture with multi-year vesting at the top leadership level.
• Creditors: No direct cash impact; neutral to leverage and liquidity.
• Customers and suppliers: No operational impact disclosed.

Next Steps

• RSUs and options begin vesting on February 25, 2027, in four equal annual installments, contingent on continued service.
• Options remain exercisable upon vesting until expiration on February 25, 2036, subject to plan terms.

Key Dates

Keywords

Waters Corporation, WAT, Udit Batra, Form 4, insider transaction, restricted stock units, RSU, stock options, beneficial ownership, vesting, exercise price $319.44, Milford MA, corporate governance, executive compensation