Timkensteel Announces Inducement Grants For Its New Chief Executive Officer
TimkenSteel announced inducement grants for its new CEO, Michael S. Williams, consisting of time-based and performance-based restricted share units (RSUs and PRSUs). The RSU Award comprises 423,400 shares, vesting on the third anniversary of the grant date (January 5, 2021). The PRSU Award targets the same number of shares with a maximum potential payout of 635,100 shares, based on performance against a benchmark group through 2023. These awards are intended to incentivize Mr. Williams' leadership.
- Inducement grants total 846,800 shares to align CEO's interests with shareholders.
- Performance-based awards incentivize long-term growth, potentially increasing share value.
- CEO compensation may raise concerns about long-term shareholder value.
- Performance metrics tied to external benchmarks may pose risks if the company underperforms.
CANTON, Ohio, Jan. 5, 2021 /PRNewswire/ -- TimkenSteel Corp. (NYSE: TMST), a leader in customized alloy steel products and services, today announced that, as previously disclosed in its Form 8-K filed with the Securities and Exchange Commission on December 18, 2020, TimkenSteel made inducement grants to Michael S. Williams, the newly-appointed President and Chief Executive Officer of TimkenSteel. The Compensation Committee of TimkenSteel's Board of Directors approved, pursuant to Section 303A.08 of the New York Stock Exchange Listed Company Manual, grants of inducement equity awards to Mr. Williams consisting of time-based restricted share units covering 423,400 of TimkenSteel's common shares (the "RSU Award") and performance-based restricted share units covering a target number of 423,400 of TimkenSteel's common shares (with a maximum payout opportunity of 635,100 common shares) (the "PRSU Award"). These awards were granted outside of the TimkenSteel Corporation 2020 Equity and Incentive Compensation Plan as inducements material to Mr. Williams' acceptance of employment with TimkenSteel. The grant date for the awards is January 5, 2021 (the "Grant Date").
The RSU Award generally vests, subject to continued employment or other specified events, on the third anniversary of the Grant Date. The PRSU Award is generally subject to relative total shareholder return performance achievement against a benchmark group of 16 entities over a three-year period ending December 31, 2023 as follows:
About TimkenSteel Corporation
TimkenSteel (NYSE: TMST) manufactures high-performance carbon and alloy steel products in Canton, OH serving demanding applications in automotive, energy and a variety of industrial end markets. The company is a premier U.S. producer of alloy steel bars (up to 16 inches in diameter), seamless mechanical tubing and precision components. In the business of making high-quality steel primarily from recycled materials for more than 100 years, TimkenSteel's proven expertise contributes to the performance of our customers' products. The company employs approximately 2,055 people and had sales of
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SOURCE TimkenSteel Corp.
FAQ
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