Form 4: Allison Transmission Director Acquires Deferred Stock Units

Director David C. Everitt acquired 1,570 deferred stock units in Allison Transmission Holdings Inc. on May 8, 2025.

Summary

• On May 8, 2025, David C. Everitt, a director of Allison Transmission Holdings Inc., acquired 1,570 deferred stock units (DSUs).
• These DSUs are part of his annual equity award under the company's Non-Employee Director Compensation Policy and are deferred under the Non-Employee Director Deferred Compensation Plan.
• Each DSU represents the economic equivalent of one share of Allison Transmission's common stock.
• The DSUs will be payable in common stock or cash at the company's election upon separation from service or a change in control.
• These DSUs vest on the date of the next annual meeting of stockholders.
• The price used to calculate the number of DSUs was $98.72, the closing price of the company's common stock on the grant date.
• Following the transaction, Everitt directly owns 34,628 DSUs.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a routine transaction related to director compensation, which is generally viewed as a positive aspect of corporate governance as it aligns director interests with shareholder value.

Positives

• The acquisition of deferred stock units aligns the director's interests with those of the shareholders.
• The vesting of DSUs at the next annual meeting encourages continued service and oversight.

Future Outlook

The DSUs become payable, in common stock or cash, at the earlier of the reporting person's separation from service or a change in control.

Industry Context

This filing is a routine disclosure related to director compensation, which is a common practice among publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Director compensation packages often include deferred stock units to incentivize long-term performance and align director interests with shareholder value, similar to practices at companies like Dana Incorporated and Meritor, Inc.
• The vesting schedule and payout terms are typical for director equity grants, mirroring arrangements seen at peers such as Cummins Inc. and BorgWarner Inc.

Stakeholder Impact

• Shareholders: The acquisition of DSUs aligns the director's interests with those of the shareholders, potentially leading to better corporate governance and decision-making.
• Employees: The transaction itself has no direct impact on employees.
• Customers and Suppliers: The transaction itself has no direct impact on customers and suppliers.

Next Steps

• The DSUs will vest on the date of the next annual meeting of the stockholders of the Company.
• The DSUs will be payable upon separation from service or a change in control.

Key Dates

Keywords

deferred stock units, director compensation, Form 4, ALSN, Allison Transmission, equity award, beneficial ownership