Goodyear increases annual equity grant for directors

Published 27/02/2025, 23:42
© Reuters.

In a recent move by The Goodyear Tire & Rubber Company (NASDAQ:GT), the Board of Directors, following the Human Capital and Compensation Committee’s recommendation, has approved amendments to the Outside Directors’ Equity Participation Plan (ODEPP). As of Monday, the annual equity grant amount for directors has been increased from $160,000 to $180,000.

The company, headquartered in Akron, Ohio, has also revised the ODEPP to allow directors the option to defer the receipt of common stock represented by restricted stock units (RSUs). Starting in April 2025, directors can choose to defer 25%, 50%, 75%, or all of their common stock represented by RSUs. Deferred RSUs will be held in an account until the fifth business day of the quarter following a director’s departure from the Board, at which point they will convert to common stock and be released. Based on InvestingPro analysis, Goodyear currently operates with a significant debt burden, with a debt-to-equity ratio of 1.85.

Furthermore, certain outdated provisions have been removed from the ODEPP. The modified plan stipulates that RSUs granted for Board service will vest and convert into shares of common stock on the earlier of the grant’s first anniversary or the subsequent annual meeting.

The changes to the ODEPP, which were originally adopted on February 2, 1996, and last amended on February 25, 2025, reflect the company’s adjustments to the compensation arrangements for its Board of Directors. The full text of the amended ODEPP has been filed with the SEC and is incorporated by reference into the company’s Form 8-K.

This update comes following the company’s filing on February 27, 2025, and is based on information from the aforementioned SEC filing.

In other recent news, Goodyear Tire & Rubber Co. reported its fourth-quarter earnings, surpassing analyst expectations. The company achieved an adjusted earnings per share of $0.39, which exceeded the consensus estimate of $0.30. Revenue for the quarter was $4.94 billion, slightly above Wall Street’s forecast of $4.91 billion. Despite a 3.3% decline in sales year-over-year and a 4% drop in tire unit volumes, Goodyear’s segment operating income increased by 0.5% to $385 million. Looking ahead to the first quarter of 2025, Goodyear anticipates earnings per share of $0.28 and revenue of $4.60 billion, both figures ahead of analyst projections. The company also reaffirmed its Goodyear Forward targets, indicating expectations for significant deleveraging in 2025. These developments highlight the company’s performance and future expectations as observed by investors and analysts.

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