4/A: Allison Transmission Director Amends Filings to Correctly Report Deferred Stock Units

Richard P. Lavin, a director at Allison Transmission Holdings, files an amendment to previous SEC Form 4 filings to accurately reflect the grant of annual retainer awards in the form of deferred stock units (DSUs) rather than common stock.

Summary

• Richard P. Lavin, a director of Allison Transmission Holdings Inc., filed an amendment to his previous SEC Form 4 filings.
• The amendment corrects the reporting of annual retainer awards, clarifying that they were granted as deferred stock units (DSUs) and not common stock.
• This correction impacts Form 4s originally filed on August 14, 2018, November 14, 2018, and February 13, 2019.
• The previous filings overstated Lavin's direct holdings of common stock by an aggregate of 1,414 shares.
• As of March 28, 2024, Lavin directly holds 9,826 shares of common stock.
• The DSUs represent quarterly payments of Lavin's annual retainer under the company's Non-Employee Director Compensation Policy, deferred under the Non-Employee Director Deferred Compensation Plan.
• Each DSU is equivalent to one share of Allison Transmission's common stock and becomes payable in common stock or cash upon separation from service or a change in control.
• DSUs earn dividend equivalents when dividends are declared on the company's common stock.
• On November 12, 2018, Lavin received 473 DSUs, calculated based on a closing price of $45.82 per share.
• As of March 28, 2024, Lavin holds a total of 29,696 DSUs.

Sentiment

Score: 7

Explanation: The document is a routine correction of a previous filing. While it highlights a past error, the overall impact is neutral as it aims to ensure accurate reporting.

Positives

• The amendment ensures accurate reporting of director compensation and share ownership.

Negatives

• Previous filings contained inaccuracies regarding the form of director compensation.

Risks

• Inaccurate reporting, even if unintentional, can lead to regulatory scrutiny.

Industry Context

This filing is a routine disclosure related to director compensation and is specific to Allison Transmission Holdings Inc.

Comparison to Industry Standards

• Director compensation practices vary across industries and companies.
• Deferred stock units are a common form of equity compensation for directors, aligning their interests with those of shareholders.
• Companies like Cummins and Dana, which operate in similar industries, also utilize equity-based compensation for their directors.

Key Dates