Roueche John E III 4
4 · FLOWSERVE CORP · Filed Feb 24, 2020
Insider Transaction Report
Form 4
Roueche John E III
Interim CFO
Transactions
- Award
Performance Rights
2020-02-20+3,720→ 14,860 total→ Common Stock (3,720 underlying) - Award
Restricted Stock Units
2020-02-20+4,770→ 15,042 total→ Common Stock (4,770 underlying)
Footnotes (2)
- [F1]Each restricted stock unit represents the right to receive, at settlement, one share of common stock (plus dividends accrued on the underlying shares) and are granted to the reporting person pursuant to the issuer's long-term incentive compensation plan for employees. 1,050 of the restricted stock units were a one-time award granted in connection with Mr. Roueche's service as the issuer's interim Chief Financial Officer from December 3, 2019 through February 23, 2020 and 3,720 were an annual award granted pursuant to the issuer's long-term incentive plan. The shares vest ratably over a three-year period on each annual anniversary of the grant.
- [F2]Each performance right represents a contingent right to receive one share of the issuer's common stock at vesting. The performance rights vest at a rate between 0% and 200% and are based on two factors during a three-year performance cycle beginning on January 1, 2020 and ending on December 31, 2022 which are: 1) the issuer's relative total shareholder return ("TSR") in comparison to the TSR averages of a predetermined compensation peer group over the performance cycle; and 2) the issuer's return on invested capital ("ROIC") measured against the issuer's ROIC improvement goals under its operating plan. The performance rights may be settled, at the issuer's discretion, in cash or shares of common stock.