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

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

Summary

• Richard P. Lavin, a director of Allison Transmission Holdings, Inc., filed an amendment to his Form 4s originally filed on August 14, 2018, November 14, 2018, and February 13, 2019.
• The amendment corrects the reporting of annual retainer awards, clarifying that they were granted as deferred stock units (DSUs) rather than common stock.
• Previous filings overstated the director's direct holdings of common stock by 1,414 shares.
• As of March 28, 2024, the director directly holds 9,826 shares of common stock.
• The reported DSUs represent quarterly payments of the director's annual retainer under the company's 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.
• The number of DSUs received on February 11, 2019, was 464, calculated based on a closing price of $45.82 per share.

Sentiment

Score: 7

Explanation: The document is a routine correction of a previous filing. While it doesn't indicate positive or negative performance, the correction itself is a sign of diligence and transparency, meriting a neutral to slightly positive sentiment.

Negatives

• Previous SEC filings overstated the director's direct holdings of common stock, requiring amendments to correct the record.

Future Outlook

The DSUs become payable, in common stock, or at the Company's election 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 and aligns with standard practices for publicly traded companies. It ensures transparency regarding the equity holdings of company insiders.

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.
• The use of deferred stock units (DSUs) is a common practice to align director interests with long-term shareholder value.
• Companies like Caterpillar, Deere, and Cummins, which operate in similar industries, also utilize equity-based compensation for their directors.
• The specific terms of the Allison Transmission's Non-Employee Director Compensation Policy, including the quarterly payment schedule and the payout conditions for DSUs, are typical of such plans.

Stakeholder Impact

• Shareholders benefit from accurate reporting of insider holdings, promoting transparency and trust.
• The correction ensures that the director's compensation is properly disclosed, which is important for corporate governance.

Key Dates