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

Richard P. Lavin, a director of Allison Transmission Holdings Inc, amended previous SEC filings to accurately reflect the grant of deferred stock units (DSUs) instead of common stock, correcting an overstatement of direct common stock holdings.

Summary

• Richard P. Lavin, a director at Allison Transmission Holdings Inc, filed an amendment to previous Form 4 filings with the SEC.
• The amendment corrects the reporting of annual retainer awards, clarifying that they were granted as deferred stock units (DSUs) rather than common stock.
• This correction addresses inaccuracies in Form 4 filings from August 14, 2018, November 14, 2018, and February 13, 2019.
• The previous filings overstated Lavin's direct holdings of common stock by a total 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 through the Non-Employee Director Deferred Compensation Plan.
• Each DSU is equivalent to one share of Allison Transmission's common stock and will be paid out in common stock or cash upon separation from service or a change in control.
• DSUs also accrue dividend equivalents when dividends are issued on the company's common stock.
• The number of DSUs granted on August 10, 2018, was 477, calculated based on a closing price of $45.82 per share of common stock on the grant date.
• 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, indicating a neutral to slightly positive sentiment as it demonstrates attention to detail and compliance with regulations.

Negatives

• Previous SEC filings contained inaccuracies regarding the reporting of director's compensation, specifically overstating direct common stock holdings.

Future Outlook

The DSUs will be paid out in common stock or cash upon the director's separation from service or a change in control of the company.

Industry Context

This filing is a routine disclosure related to director compensation and aligns with standard practices for publicly traded companies. It ensures transparency regarding the equity-based compensation of company directors.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash retainers, equity awards (like stock options or restricted stock), and deferred compensation plans.
• Deferred stock units (DSUs) are a common component, allowing directors to defer income and align their interests with long-term shareholder value.
• Companies like Caterpillar, Deere, and Cummins, which operate in similar industrial sectors, also utilize equity-based compensation for their directors.
• The specific terms of these plans (vesting schedules, payout triggers, etc.) can vary, but the underlying principle of aligning director incentives with shareholder value remains consistent.

Stakeholder Impact

• The correction of the filing ensures accurate information for shareholders regarding director compensation.
• This promotes transparency and trust in the company's governance practices.

Key Dates