4/A: Workhorse Group CFO Robert Ginnan Receives 946,372 Restricted Stock Units

Workhorse Group's CFO, Robert Ginnan, was granted 946,372 restricted stock units (RSUs) on February 21, 2024, vesting in equal installments over three years.

Summary

• Robert M. Ginnan, CFO of Workhorse Group Inc., received 946,372 restricted stock units (RSUs) on February 21, 2024.
• The RSUs vest in equal one-third increments annually, starting February 21, 2025.
• Each RSU represents a contingent right to receive one share of Workhorse Group Inc. common stock.
• The company has the discretion to settle the RSUs in cash upon vesting.
• The original Form 4 filing did not contemplate the ability of the Company to settle the RSUs in cash, which is the reason for this amended filing.
• The stock price reflected in Table I Column 4 was determined based on fair market value as the closing trading price of the Company's common stock on the grant date.

Sentiment

Score: 6

Explanation: The document is a routine SEC filing related to executive compensation. It is neutral in tone and does not contain any information that would significantly impact investor sentiment positively or negatively. The administrative error requiring amendment is slightly negative.

Positives

• The grant of RSUs to the CFO aligns his interests with those of the shareholders, incentivizing him to improve the company's performance.
• The vesting schedule encourages long-term commitment from the CFO.

Risks

• The company's discretion to settle the RSUs in cash could dilute shareholder value if a large number of RSUs are settled in cash rather than shares.
• The vesting of the RSUs is contingent upon the CFO's continued employment with the company.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedule of the RSUs.

Industry Context

Equity compensation is a common practice in the industry to attract and retain key executives. The size and vesting schedule of the RSU grant are likely determined based on industry benchmarks and the company's performance.

Comparison to Industry Standards

• Equity compensation for CFOs in the automotive industry varies widely based on company size, performance, and stage of development.
• Comparing the size of this RSU grant to those of CFOs at similar-sized electric vehicle companies would provide a better understanding of its relative value.
• Companies like Rivian, Lucid, and Nikola could be considered peers for comparison, although their financial situations and market capitalizations differ significantly from Workhorse Group.

Stakeholder Impact

• Shareholders may view the RSU grant as a positive sign that the company is investing in its leadership.
• Employees may see the RSU grant as a sign of confidence in the company's future.

Key Dates