Waste Management approves $2.1 million retention award for senior executive

Published 27/08/2025, 21:36
Waste Management approves $2.1 million retention award for senior executive

Waste Management, Inc. (NYSE:WM), a prominent player in the Commercial Services & Supplies industry with a market capitalization of $91 billion, disclosed Wednesday that its Management Development and Compensation Committee approved a one-time retention award of restricted stock units (RSUs) valued at $2,100,000 for Tara J. Hemmer, Senior Vice President and Chief Sustainability Officer. According to InvestingPro analysis, the company is currently trading above its Fair Value, with a P/E ratio of 33.4x. The award was authorized on August 21 and will be granted on September 2 under the company’s 2023 Stock Incentive Plan.

According to the company’s statement, the number of RSUs to be issued will be determined by dividing the $2,100,000 award value by the average of the high and low prices of Waste Management’s common stock over the 30 trading days prior to the grant date. Upon vesting, each RSU will convert into one share of company common stock.

The RSUs will vest in two equal installments: 50% on the second anniversary of the grant date and the remaining 50% on the third anniversary. Dividend equivalents will accrue during the vesting period and be paid in cash when the RSUs are distributed. Notably, InvestingPro data shows that Waste Management has maintained dividend payments for 28 consecutive years, with a current dividend yield of 1.47% and recent dividend growth of 10%.

The filing outlines specific provisions in case of employment termination. All unvested RSUs will vest immediately in the event of death or disability. If Ms. Hemmer reaches retirement eligibility at age 55 in October 2027 and retires before the final vesting date, the remaining RSUs will vest but be issued after the final vesting date. In cases of involuntary termination without cause, a prorated portion of unvested RSUs will vest and be distributed following the regular vesting schedule. All unvested RSUs will be forfeited upon resignation or involuntary termination for cause. If involuntary termination without cause occurs following a change in control, all unvested RSUs will vest and be paid according to the normal schedule.

The company noted that further details are available in the RSU award agreement attached as an exhibit to the SEC filing. This information is based on a press release statement included in the company’s Form 8-K submitted to the Securities and Exchange Commission.

In other recent news, Waste Management reported its second-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share of $1.92, slightly above the forecast of $1.90. The company’s revenue also exceeded projections, reaching $6.43 billion compared to the anticipated $6.37 billion. This strong performance was noted by Scotiabank, which raised its price target for Waste Management to $275, maintaining a Sector Outperform rating. The company’s results were bolstered by strong special waste volumes, tuck-in acquisitions, positive pricing trends, sustainability initiatives, and cost efficiencies. Additionally, Waste Management announced a quarterly cash dividend of $0.825 per share, continuing its regular payments to shareholders. In leadership news, Executive Vice President and Chief Financial Officer Devina Rankin plans to retire after nearly 23 years with the company, transitioning out of her role in November 2025. She will remain as an executive advisor through March 2026. These developments highlight Waste Management’s ongoing strategic initiatives and leadership changes.

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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