Form 4: Xylem Inc. President and CEO Matthew Pine Awarded Stock Options and Restricted Stock Units

Matthew Pine, President and CEO of Xylem Inc., received an award of stock options and restricted stock units on March 5, 2025.

Summary

• On March 5, 2025, Matthew Pine, President and CEO of Xylem Inc., was granted 49,392 non-qualified stock options with an exercise price of $129.67.
• These options vest in one-third increments on March 5, 2026, March 5, 2027, and March 5, 2028, and expire on March 5, 2035.
• Pine also received 14,074 restricted stock units, which vest in one-third increments on March 5, 2026, March 5, 2027, and March 5, 2028.
• Following these transactions, Pine directly owns 58,199 shares of Xylem Inc. common stock.
• The awards were made pursuant to the Xylem 2011 Omnibus Incentive Plan (Amended and Restated February 24, 2016).

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which is generally viewed neutrally to positively as it aligns management with shareholder interests. The sentiment is moderately positive.

Positives

• The grant of stock options and restricted stock units aligns the executive's interests with those of the shareholders.
• The vesting schedule encourages long-term performance and retention of the executive.

Industry Context

Executive compensation packages including stock options and restricted stock units are common in publicly traded companies to incentivize performance and align management's interests with shareholder value.

Comparison to Industry Standards

• Stock option grants are a typical component of executive compensation packages in companies of similar size and industry to Xylem, such as Pentair and IDEX Corporation.
• The vesting schedules are also standard, often spread over three to four years to encourage long-term commitment.

Stakeholder Impact

• Shareholders: The grant of stock options and restricted stock units can potentially increase shareholder value if the executive's performance leads to company growth.
• Employees: The compensation package can serve as a motivator for other employees, as it demonstrates the company's commitment to rewarding performance.

Key Dates