What is the primary purpose of this special equity award to Lee C. Banks?

The special equity award of 14,194 restricted stock units (RSUs) is designed to retain and incentivize a key executive officer, Lee C. Banks, by aligning his long-term interests with those of Parker-Hannifin's shareholders. The vesting schedule encourages continued employment and performance.

When will Mr. Banks receive the shares from these RSUs?

The RSUs will vest in full on August 17, 2021, provided that Mr. Banks remains an active full-time employee of Parker-Hannifin throughout the entire vesting period. Upon vesting, the shares will be delivered to him.

What happens to the RSUs if Mr. Banks leaves the company before the vesting date?

If Mr. Banks ceases to be employed by the Company for any reason other than death, disability, or a Change in Control, he will forfeit the entire award. However, in the event of his death, disability, or a Change in Control occurring before August 17, 2021, the RSUs will vest immediately.

Does Mr. Banks have any ownership rights (like voting or dividends) for the shares underlying the RSUs before they vest?

No, Mr. Banks does not receive dividends nor does he have voting rights in the common shares underlying the RSUs prior to vesting. He does, however, receive dividend equivalents, which are payments made in lieu of dividends.

PH 8-K: Leadership Changes

Summary

This 8-K filing from Parker-Hannifin Corporation (PH) on August 22, 2016, reports on a significant equity award granted to a named executive officer, Lee C. Banks. The Human Resources and Compensation Committee approved a special equity award of 14,194 restricted stock units (RSUs), valued based on the Company's common stock. This award is intended to incentivize Mr. Banks and align his interests with those of shareholders over the long term.

Key Highlights

1Lee C. Banks, a named executive officer, received a special equity award of 14,194 restricted stock units (RSUs).
2The RSUs vest in full on August 17, 2021, contingent upon Mr. Banks remaining an active full-time employee.
3The award is subject to forfeiture if Mr. Banks leaves the company before the vesting date, except in cases of death, disability, or a Change in Control.
4In the event of death, disability, or a Change in Control prior to vesting, the RSUs will vest immediately.
5Vested RSUs will be paid in shares of Parker-Hannifin's common stock.
6Mr. Banks does not have voting rights or receive dividends on the underlying shares, but is entitled to dividend equivalents.

Parker-Hannifin Corp 8-K Report, Executive Changes (Aug 22, 2016)

Summary

Key Highlights

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