Southwest Gas CEO awarded special performance stock

Published 25/02/2025, 22:32
Southwest Gas CEO awarded special performance stock

On February 20, 2025, Southwest Gas Holdings, Inc. (NYSE:SWX), a $5.54 billion utility company trading near its 52-week high of $80.28, disclosed a new compensatory arrangement for Karen S. Haller, the company’s President and CEO. According to InvestingPro data, the company maintains a strong GOOD financial health score and has consistently paid dividends for 55 consecutive years. According to the recent 8-K filing with the Securities and Exchange Commission, the Board of Directors awarded Haller 25,456.088 special performance stock units (PSUs) under the 2024 Omnibus Incentive Plan, assuming target performance levels are met. With the company’s earnings announcement scheduled for February 26, 2025, InvestingPro subscribers can access detailed financial metrics and expert analysis through the comprehensive Pro Research Report, available for over 1,400 US stocks.

The PSUs are set to vest on December 31, 2026, contingent upon the achievement of specified performance goals related to the company’s earnings per share and adjusted net income, with an additional modifier based on total shareholder return. Continuation of service is a prerequisite for the vesting of these units.

The agreement includes clauses for immediate vesting in cases of death, disability, approved retirement, involuntary termination due to a general reduction in force or job elimination, and termination without cause or for good reason within two years after a change in control of the company. However, these provisions exclude instances of termination for cause.

The terms also outline restrictions on the transfer and encumbrance of the PSUs prior to vesting, forfeiture conditions, and the crediting of dividend equivalents. Following vesting, the common stock and accumulated dividend equivalents will be distributed as soon as administratively feasible. The agreement includes details on tax liabilities and withholding, ensuring compliance with Section 409A of the Internal Revenue Code.

The full text of the Performance Stock Unit Award Agreement with Karen S. Haller is attached to the SEC filing as Exhibit 10.1. This executive compensation development at Southwest Gas Holdings, Inc. reflects the company’s commitment to aligning the interests of its executives with those of its shareholders, while also adhering to regulatory requirements and corporate governance standards. The information provided in this article is based on the company’s SEC filing. Currently trading at a P/E ratio of 31.03, Southwest Gas Holdings presents an interesting investment case. For deeper insights into the company’s valuation and growth prospects, including additional ProTips and comprehensive financial analysis, explore InvestingPro’s detailed research tools and expert recommendations.

In other recent news, Southwest Gas Holdings, Inc. has announced a second-quarter cash dividend of $0.62 per share. This dividend is scheduled for payment on June 2, 2025, to shareholders of record as of May 15, 2025, and represents an annualized rate of $2.48 per share. The company has consistently provided quarterly dividends since its initial public offering in 1956, highlighting its stable financial position. This announcement is part of the company’s strategy to deliver value to its investors, reflecting its financial health and consistent cash flow generation. Southwest Gas Holdings operates through its subsidiary, Southwest Gas Corporation, and is also the majority owner of Centuri Holdings, Inc. The company serves over 2 million customers across Arizona, Nevada, and California. Shareholders can find more details on the tax status of these dividend distributions on the company’s website.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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