Form 4: Williams EVP & COO Larry Larsen's RSU Grant Adjusted Upward

Williams Companies' Executive Vice President and COO, Larry C. Larsen, saw an upward adjustment to his restricted stock units due to performance exceeding targets.

Summary

• Larry C. Larsen, Executive Vice President & COO of Williams Companies, Inc. (WMB), received an adjustment to his restricted stock units (RSUs).
• The adjustment involved an acquisition of 13,604 derivative securities (RSUs).
• This adjustment resulted from the company's performance exceeding target goals for the 2023 performance-based RSU grant agreement.
• Following this transaction, Larsen beneficially owns 36,939 derivative securities.
• Vesting of these RSUs is contingent upon meeting specific performance requirements, including Return on Capital Employed and Available Funds from Operations per share, each weighted at 50%.
• Relative Total Shareholder Return acts as a performance modifier, potentially adjusting the payout by up to 25%.
• The final payout for these units can range from 0% to 200% of the awarded number.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, indicating that the company achieved performance targets for its executive compensation plan, leading to an upward adjustment in restricted stock units for a key executive.

Positives

• The reporting person's restricted stock units were adjusted upward by 13,604 units.
• This adjustment was a direct result of the company achieving "performance greater than target" for the 2023 performance-based RSU grant agreement.

Future Outlook

The vesting of the restricted stock units is subject to future performance requirements, including Return on Capital Employed, Available Funds from Operations per share, and Relative Total Shareholder Return, with a potential payout ranging from 0% to 200% of the awarded units.

Industry Context

StockSavvy.ai notes that Form 4 filings are routine disclosures of insider transactions, often related to executive compensation. This specific filing indicates that Williams Companies' performance metrics for executive incentives are tied to capital efficiency (Return on Capital Employed), operational cash flow (Available Funds from Operations per share), and shareholder returns, which are common performance indicators in the energy infrastructure sector.

Comparison to Industry Standards

• This filing details an executive compensation adjustment based on internal performance targets. StockSavvy.ai finds that while the specific metrics (Return on Capital Employed, Available Funds from Operations per share, Relative Total Shareholder Return) are standard for performance-based compensation in the energy sector, direct comparisons to specific projects or results of comparable companies like Kinder Morgan (KMI) or Energy Transfer (ET) are not applicable here as this is an individual compensation event rather than a company-wide operational or financial result.

Stakeholder Impact

• Shareholders: Potentially positive, as the RSU adjustment is tied to "performance greater than target," suggesting strong company performance.
• Employees: No direct impact mentioned, but strong company performance can generally be positive for employee morale and future opportunities.
• Executive (Larry C. Larsen): Directly positive, as his potential compensation increased due to the upward adjustment of RSUs.

Next Steps

• Vesting of the adjusted restricted stock units on or after February 23, 2026, subject to applicable grant agreement and Compensation and Management Development Committee certification of performance requirements.

Key Dates

Keywords

Williams Companies, WMB, Larry C Larsen, SEC Form 4, Restricted Stock Units, RSU, Executive Compensation, Performance-based compensation, Insider Transaction, Corporate Governance