Sensata Technologies Holding plc Announces Inducement Grant Under New York Stock Exchange Listed Company Manual Rule 303A.08
Sensata Technologies (NYSE: ST) has announced equity awards for its incoming CEO Stephan von Schuckmann, effective January 1, 2025. The compensation package includes two sets of restricted stock units (RSUs) covering 16,424 and 106,752 ordinary shares, and two performance-based restricted stock units (PRSUs) covering 20,073 and 130,475 shares.
The RSUs will vest in three equal installments over three years, subject to continued employment. The first RSU award includes immediate vesting upon involuntary termination without cause or voluntary termination for good reason. The PRSU vesting terms and performance criteria will be established by Sensata's Compensation Committee before April 1, 2025, aligned with senior executive compensation plans.
Sensata Technologies (NYSE: ST) ha annunciato premi azionari per il suo prossimo CEO, Stephan von Schuckmann, a partire dal 1 gennaio 2025. Il pacchetto retributivo include due tranche di unità azionarie vincolate (RSUs) che coprono rispettivamente 16.424 e 106.752 azioni ordinarie, e due tranche di unità azionarie vincolate basate sulle performance (PRSUs) che coprono 20.073 e 130.475 azioni.
Le RSUs matureranno in tre rate uguali nell'arco di tre anni, a condizione di un impiego continuativo. Il primo premio RSU prevede la maturazione immediata in caso di cessazione involontaria del contratto senza giusta causa o di cessazione volontaria per giustificato motivo. I criteri di maturazione e le condizioni di performance delle PRSU saranno stabiliti dal Comitato Compensazioni di Sensata prima del 1 aprile 2025, allineati ai piani di compensazione dei dirigenti senior.
Sensata Technologies (NYSE: ST) ha anunciado premios en acciones para su próximo CEO, Stephan von Schuckmann, a partir del 1 de enero de 2025. El paquete de compensación incluye dos conjuntos de unidades de acciones restringidas (RSUs) que cubren 16,424 y 106,752 acciones ordinarias, y dos unidades de acciones restringidas basadas en rendimiento (PRSUs) que cubren 20,073 y 130,475 acciones.
Las RSUs se consolidarán en tres pagos iguales durante tres años, sujeto a la continuidad del empleo. El primer premio de RSU incluye la consolidación inmediata en caso de terminación involuntaria sin causa o terminación voluntaria por una buena razón. Los términos de consolidación de la PRSU y los criterios de rendimiento serán establecidos por el Comité de Compensación de Sensata antes del 1 de abril de 2025, alineándose con los planes de compensación para ejecutivos senior.
센사타 테크놀로지스 (NYSE: ST)는 오는 CEO 스테판 폰 슈크만에게 2025년 1월 1일부터 적용되는 주식 보상을 발표했습니다. 보상 패키지에는 각각 16,424주와 106,752주의 보통주를 포함하는 두 세트의 제한 주식 단위(RSU)와 20,073주 및 130,475주의 성과 기반 제한 주식 단위(PRSU)가 포함됩니다.
RSU는 계속 근무하는 조건 하에 3년에 걸쳐 3회에 걸쳐 균등하게 발생합니다. 첫 번째 RSU 보상은 정당한 사유 없이 자발적인 종료 또는 강제 해지 시 즉시 발생합니다. PRSU의 발생 조건 및 성과 기준은 2025년 4월 1일 이전에 센사타 보상 위원회에 의해 설정되며, 고위 경영자 보상 계획과 일치합니다.
Sensata Technologies (NYSE: ST) a annoncé des attributions d'actions pour son futur PDG, Stephan von Schuckmann, prenant effet le 1er janvier 2025. Le package de compensation comprend deux ensembles d'unités d'actions restreintes (RSUs) couvrant 16 424 et 106 752 actions ordinaires, ainsi que deux unités d'actions restreintes basées sur la performance (PRSUs) couvrant 20 073 et 130 475 actions.
Les RSUs seront acquises en trois versements égaux sur trois ans, sous réserve d'un emploi continu. La première attribution RSU comprend une acquisition immédiate en cas de licenciement involontaire sans motif ou de démission volontaire pour un bon motif. Les conditions d'acquisition et les critères de performance des PRSU seront établis par le comité de rémunération de Sensata avant le 1er avril 2025, en accord avec les plans de rémunération des cadres supérieurs.
Sensata Technologies (NYSE: ST) hat Aktienvergütungen für seinen kommenden CEO Stephan von Schuckmann angekündigt, die ab dem 1. Januar 2025 in Kraft treten. Das Vergütungspaket umfasst zwei Sätze von Restricted Stock Units (RSUs), die 16.424 und 106.752 Stammaktien abdecken, sowie zwei leistungsabhängige Restricted Stock Units (PRSUs), die 20.073 und 130.475 Aktien abdecken.
Die RSUs werden über drei Jahre in drei gleichen Raten fällig, wobei die Fortsetzung des Anstellungsverhältnisses Voraussetzung ist. Die erste RSU-Auszeichnung sieht die sofortige Fälligkeit bei ungewollter Kündigung ohne Grund oder freiwilliger Kündigung aus gutem Grund vor. Die Fälligkeitsbedingungen der PRSU und die Leistungskennzahlen werden vor dem 1. April 2025 vom Vergütungsausschuss von Sensata festgelegt und an die Vergütungspläne für leitende Angestellte angepasst.
- Structured CEO compensation package aligned with long-term performance and retention
- Clear vesting schedule and protection clauses for the incoming CEO
- Potential shareholder dilution from new share issuance
- Significant equity compensation package increasing company expenses
Insights
The compensation package for the new CEO includes significant equity-based incentives totaling 273,724 shares through a combination of RSUs and PRSUs. The time-based RSUs (123,176 shares) follow a standard three-year vesting schedule, while the performance-based PRSUs (150,548 shares) await specific performance criteria. At current market value, this represents a substantial equity package worth approximately
The structure aligns with market practices for CEO compensation, featuring both time-based retention elements and performance-linked incentives. The immediate vesting provisions for involuntary termination without cause or resignation for good reason provide reasonable protection while maintaining accountability. This balanced approach reflects contemporary executive compensation trends among similarly-sized industrial technology companies.
A notable aspect is the delayed establishment of PRSU performance criteria, giving the Compensation Committee flexibility to align goals with current market conditions and strategic priorities. This timing suggests careful consideration of 2024 performance metrics and 2025 objectives.
The inducement grant structure adheres to NYSE Rule 303A.08, demonstrating proper corporate governance in executive onboarding. The dual-class equity awards (RSUs and PRSUs) create a balanced incentive framework that serves both retention and performance objectives. The bifurcation of awards into smaller and larger tranches suggests a thoughtful approach to immediate transition incentives versus long-term alignment.
The accelerated vesting provisions for the first tranches of both RSUs and PRSUs provide reasonable protection for the incoming CEO while maintaining appropriate governance standards. The framework allows for performance criteria alignment with the company's strategic direction under new leadership, with metrics to be set by Q1 2025.
The material terms of the awards are as follows:
- The awards of RSUs cover 16,424 and 106,752 of Sensata Technologies’ ordinary shares, respectively. The RSUs will become vested in three substantially equal installments on the first three anniversaries of their grant date, subject to Mr. von Schuckmann’s continued employment through each vesting date. The award agreement for the first RSU provides that any unvested RSUs subject to that award shall immediately vest upon an involuntary termination by Sensata Technologies of Mr. von Schuckmann’s employment without cause (as that term is defined in Mr. von Schuckmann’s employment agreement) or a voluntary termination by Mr. von Schuckmann of his employment for good reason (as that term is defined in Mr. von Schuckmann’s employment agreement).
- The awards of PRSUs cover 20,073 and 130,475 of Sensata Technologies’ ordinary shares, respectively. The vesting terms for the PRSUs, including the vesting schedule and applicable performance criteria, will be established by Sensata Technologies’ Compensation Committee prior to April 1, 2025, in connection with its annual determination of equity incentive compensation for its senior executives. The award agreement for the first PRSU provides that any unvested PRSUs subject to that award shall immediately vest upon an involuntary termination by Sensata Technologies of Mr. von Schuckmann’s employment without cause (as that term is defined in Mr. von Schuckmann’s employment agreement) or a voluntary termination by Mr. von Schuckmann of his employment for good reason (as that term is defined in Mr. von Schuckmann’s employment agreement).
The RSUs and PRSUs are subject in all respects to the terms and conditions of Sensata Technologies’ 2021 Equity Incentive Plan (the “2021 Plan”), but were not issued under the 2021 Plan. Except as noted above, the RSUs and PRSUs include vesting treatment on termination of employment or change in control consistent with Sensata Technologies’ standard terms for awards granted to its executive officers pursuant to the 2021 Plan.
Each award was granted as a material inducement to employment in accordance with the NYSE Listed Company Manual Rule 303A.08.
About Sensata Technologies
Sensata Technologies is a global industrial technology company striving to create a safer, cleaner, more efficient and electrified world. Through its broad portfolio of mission-critical sensors, electrical protection components and sensor-rich solutions, Sensata helps its customers address increasingly complex engineering and operating performance requirements. With more than 18,000 employees and global operations in 15 countries, Sensata serves customers in the automotive, heavy vehicle & off-road, industrial, and aerospace markets. Learn more at www.sensata.com and follow Sensata on LinkedIn, Facebook, X, and Instagram.
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Media & Investor Contact:
James Entwistle
+1 (508) 954-1561
jentwistle@sensata.com
investors@sensata.com
Source: Sensata Technologies
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