Form 4: Allison Transmission CEO David Graziosi Sells Shares and Exercises Stock Options
SEC Form 4
David S. Graziosi, Chair, President, and CEO of Allison Transmission Holdings Inc, reports the sale of shares and exercise of stock options.
Summary
- David S. Graziosi, the Chair, President, and CEO of Allison Transmission Holdings Inc, filed a Form 4 detailing changes in beneficial ownership.
- On February 20, 2024, Graziosi exercised stock options to acquire 76,318 shares of common stock at a price of $43.13 per share and sold the same amount of shares at a weighted average price of $70.5737, ranging from $70.0292 to $70.9800.
- On February 24, 2024, Graziosi settled 14,767 restricted stock units (RSUs) and 593 dividend equivalent rights (DERs).
- Allison Transmission withheld 6,775 shares to satisfy tax withholding obligations related to the vesting of DERs and RSUs.
- Following these transactions, Graziosi directly owns 134,064 shares of Allison Transmission common stock.
Sentiment
Score: 5
Explanation: The sentiment is neutral as it reports routine transactions by an executive. There's no indication of positive or negative implications for the company's performance.
Industry Context
Executive stock transactions are a common occurrence and are closely watched by investors for signals about a company's prospects. It is important to consider the overall context of these transactions, including the executive's compensation package and the company's performance.
Comparison to Industry Standards
- Executive compensation packages often include stock options and restricted stock units to align management's interests with those of shareholders.
- The vesting schedules and exercise prices of these instruments are typically benchmarked against industry peers to ensure competitiveness.
- Sales of shares by executives are a normal part of personal financial planning and do not necessarily indicate a negative outlook on the company's future.
Stakeholder Impact
- Shareholders may be interested in executive stock transactions as an indicator of management's confidence in the company.
- The transactions have a minor impact on the overall shareholding structure.
Key Dates
| Date | Description |
|---|---|
| 02/10/2022 | Start date for vesting of employee stock options in three equal annual installments. |
| 02/24/2022 | Date of grant for restricted stock units (RSUs). |
| 02/20/2024 | Date of stock option exercise and share sale. |
| 02/24/2024 | Date of RSU and DER settlement. |
| 02/27/2024 | Date of signature on the Form 4 filing. |
| 02/10/2031 | Expiration date of employee stock options. |
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