Form 4: Allison Transmission Director Carolann I. Haznedar Reports Acquisition of Deferred Stock Units

Director Carolann I. Haznedar reports acquisition of 2,017 deferred stock units (DSUs) of Allison Transmission Holdings Inc.

Summary

• On May 9, 2024, Carolann I. Haznedar, a director of Allison Transmission Holdings Inc., acquired 2,017 deferred stock units (DSUs).
• These DSUs are part of her annual equity award under the company's 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 vest on the date of the next annual meeting of stockholders and will be payable in common stock or cash upon separation from service or a change in control.
• Following the transaction, Haznedar directly owns 20,239 DSUs.
• The price of the company's common stock on the date of grant was $76.81.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and ongoing governance process. The sentiment is neutral to slightly positive as it reflects standard corporate practices.

Positives

• The acquisition of deferred stock units aligns the director's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment to the company's success.

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 equity ownership, common in publicly traded companies to ensure transparency and compliance with SEC regulations.

Comparison to Industry Standards

• Director compensation packages often include deferred stock units to align director interests with shareholder value, a common practice among publicly traded companies like Allison Transmission.
• Companies such as Dana Incorporated and Meritor, Inc. (now Cummins Inc.) also utilize similar equity-based compensation strategies for their directors.

Stakeholder Impact

• The acquisition of DSUs by a director can positively influence shareholder confidence by aligning management's interests with shareholder value.

Key Dates