Form 4: Allison Transmission Director Acquires Dividend Rights

Allison Transmission Holdings Inc. Director Krishna Shivram acquired dividend equivalent rights tied to previously awarded restricted stock units.

Summary

• Krishna Shivram, a Director at Allison Transmission Holdings Inc. (ALSN), acquired 4 Dividend Equivalent Rights (DERs).
• The transaction date for these rights was December 5, 2025.
• These DERs accrued on previously awarded restricted stock units (RSUs) and will vest proportionately with the underlying RSUs.
• Each dividend equivalent right is economically equivalent to one share of Allison Transmission Holdings, Inc. common stock.
• The acquisition was made at a price of $0 per dividend equivalent right.
• The transaction was made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities, intended to satisfy Rule 10b5-1(c).

Sentiment

Score: 6

Explanation: Slightly positive, as it represents an increase in insider alignment with shareholder interests through compensation, though it is a routine, non-cash transaction of a small magnitude.

Positives

• The acquisition of Dividend Equivalent Rights by a director indicates continued alignment of management interests with shareholder value, as these rights are tied to common stock performance.

Negatives

• No direct cash investment was made by the director for these rights, as they accrued on existing compensation.

Future Outlook

The acquired Dividend Equivalent Rights will vest proportionately with the underlying Restricted Stock Units to which they relate, indicating a future vesting event tied to the original RSU grants.

Industry Context

Insider transactions, such as the accrual of dividend equivalent rights on executive compensation, are a standard practice across various industries. This particular transaction reflects a routine compensation event rather than a discretionary open-market purchase or sale, aligning with typical corporate governance structures for executive incentives.

Comparison to Industry Standards

• The accrual of dividend equivalent rights on restricted stock units is a common component of executive compensation packages across many publicly traded companies, designed to align executive interests with shareholder returns by providing the economic benefit of dividends on unvested equity awards.
• The reported transaction, involving a small number of rights (4), is typical for routine, non-discretionary compensation events rather than a significant investment decision by the director.

Stakeholder Impact

• Shareholders: The transaction slightly increases the alignment of a director's interests with shareholders, as the value of the dividend rights is tied to the company's common stock.

Next Steps

• The Dividend Equivalent Rights will vest proportionately with the Restricted Stock Units to which they relate.

Key Dates

Keywords

Allison Transmission Holdings Inc., ALSN, Krishna Shivram, Director, Dividend Equivalent Rights, Restricted Stock Units, Insider Trading, SEC Form 4, Corporate Governance