POWER SOLUTIONS INTERNATIONAL, INC. 8-K

What Happened
Power Solutions International, Inc. (PSIX) announced on March 6, 2026 that its Board approved the "Power Solutions International, Inc. 2026 Phantom Unit Plan." The plan lets the company grant cash-settled "Phantom Units" to eligible service providers; each unit represents a cash obligation equal to the average fair market value per share of PSIX common stock over the 30 trading days before the applicable vesting date. The company filed the full plan and the form of award agreement as exhibits to the 8-K.

Key Details

• Approval date: March 6, 2026.
• Award type: cash-settled "Phantom Units" (no actual shares, no voting rights, no dividends).
• Valuation: settlement amount based on the average fair market value per share over the 30 trading days preceding each vesting date; number of units at grant is based on the 30 trading days preceding the grant date.
• Vesting: three equal annual installments (first on the vesting commencement date, then on the first and second anniversaries).
• Accelerated vesting: occurs on death or disability; on a change in control if the acquiror does not assume/substitute awards; or on involuntary termination/resignation for good reason within 24 months after a change in control if awards were assumed/substituted.
• Payout/settlement: lump-sum cash payment within 60 days after the applicable vesting date.
• Administration: plan administered by the Board or a committee; awards subject to the company’s clawback/recoupment policies and governed by Delaware law.

Why It Matters
This plan creates a cash-based long-term incentive that ties employee and service-provider payouts to PSIX’s stock price without issuing new shares. For investors, that means the plan will not dilute share count, but it does create potential future cash obligations and related compensation expense when awards vest and are settled. Accelerated vesting on a change in control could increase near-term cash needs in the event of an acquisition or other corporate transaction. The full plan and award form are filed as exhibits to the 8-K for details.