Form 4: Allison Transmission Director Gustave Perna Settles Restricted Stock Units

Director Gustave Perna settled restricted stock units and dividend equivalent rights into common stock and received additional restricted stock units.

Summary

• On May 8, 2024, Director Gustave Perna settled 3,146 restricted stock units (RSUs) and 50 dividend equivalent rights into 3,196 shares of Allison Transmission Holdings Inc. common stock.
• The RSUs vested on May 8, 2024, and each RSU represents a contingent right to receive one share of the company's common stock.
• Additionally, on May 9, 2024, Perna was granted 2,017 RSUs under the Eighth Amended and Restated Non-Employee Director Compensation Policy.
• These new RSUs vest on the date of the next annual meeting of the stockholders and earn dividend equivalents when dividends are declared on the company's common stock.
• The number of RSUs received was calculated based on a price of $76.81 per share, which was 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 filing reflects standard compensation practices and aligns director interests with shareholders. There are no indications of negative events or concerns.

Positives

• The vesting of RSUs and dividend equivalents provides Perna with additional shares of Allison Transmission Holdings Inc.
• The grant of new RSUs aligns Perna's interests with those of the company's shareholders.

Future Outlook

The new RSUs granted to the reporting person will vest on the date of the next annual meeting of the stockholders of the Company.

Industry Context

This filing is a routine disclosure related to director compensation and equity awards, common in publicly traded companies. It reflects standard practices for aligning director interests with shareholder value through equity-based compensation.

Comparison to Industry Standards

• Equity compensation for directors is a common practice among publicly traded companies.
• Companies like Dana Incorporated and Meritor, Inc. (now part of Cummins Inc.) also utilize RSUs and stock options as part of their director compensation packages.
• The vesting schedules and grant values are typically benchmarked against peer companies to ensure competitive compensation levels.

Stakeholder Impact

• The vesting of RSUs and grant of new RSUs could have a minor dilutive effect on existing shareholders.
• The equity compensation aligns the director's interests with the long-term performance of the company, which is beneficial for shareholders.

Key Dates