Form 4: Allison Transmission Director Christman Settles Restricted Stock Units

Director Philip J. Christman settled restricted stock units and dividend equivalent rights into common stock and received additional restricted stock units.

Summary

• On May 8, 2024, Philip J. Christman, a director of Allison Transmission Holdings, Inc., settled 3,146 restricted stock units (RSUs) and 50 dividend equivalent rights into common stock.
• This transaction resulted in the acquisition of 3,196 shares of common stock at a price of $0.
• Following the transaction, Christman directly owns 6,010 shares of common stock.
• On May 9, 2024, Christman acquired 2,017 additional RSUs, which vest on the date of the next annual meeting of stockholders.
• These new RSUs were granted as part of the annual equity award under the company's director compensation policy.
• The number of RSUs received was calculated based on a price of $76.81 per share, the closing price of the company's common stock on the date of grant.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The director is increasing their stake in the company, which can be seen as a sign of confidence. The transactions are part of a standard compensation plan.

Positives

• The acquisition of additional shares by a director can be seen as a positive signal, indicating confidence in the company's future performance.

Future Outlook

The newly acquired RSUs will vest on the date of the next annual meeting of the stockholders of the Company.

Industry Context

Executive compensation and equity awards are standard practice in publicly traded companies to align management's interests with those of shareholders. This filing reflects the ongoing equity-based compensation for a director at Allison Transmission.

Comparison to Industry Standards

• Equity compensation for directors is a common practice among publicly traded companies.
• Companies like Dana Incorporated (DAN) and Meritor, Inc. (now part of Cummins Inc.) also utilize restricted stock units as part of their director compensation packages.
• The vesting schedules and grant sizes are typically benchmarked against peer companies within the automotive and industrial sectors to ensure competitive compensation.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with those of the shareholders.

Next Steps

• The newly acquired RSUs will vest on the date of the next annual meeting of the stockholders of the Company.

Key Dates