Form 4: Allison Transmission Director Judy L. Altmaier Reports Acquisition of Deferred Stock Units

Director Judy L. Altmaier reported the acquisition of 2,017 deferred stock units (DSUs) of Allison Transmission Holdings Inc. on May 09, 2024.

Summary

• On May 9, 2024, Judy L. Altmaier, a director of Allison Transmission Holdings Inc., acquired 2,017 deferred stock units (DSUs).
• These DSUs were granted as part of her annual equity award under the company's director compensation policy and 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.
• Altmaier received the DSUs at a price of $0, with the number of DSUs calculated based on a closing price of $76.81 per share on the grant date.
• Following the transaction, Altmaier beneficially owns 19,446 DSUs.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The acquisition of DSUs by a director is a routine event, but it also indicates confidence in the company's stock and aligns the director's interests with shareholders.

Positives

• The acquisition of DSUs by a director signals confidence in the company's future performance.
• The deferred compensation plan aligns the director's interests with those of the shareholders.

Future Outlook

The DSUs become payable in common stock or 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 executive compensation and is typical for publicly traded companies. It reflects standard practices for aligning director compensation with shareholder value.

Comparison to Industry Standards

• Deferred stock units are a common form of equity compensation for directors in publicly traded companies, similar to practices at companies like Cummins and Caterpillar.
• The vesting schedule and payout terms (separation from service or change in control) are also standard in the industry.
• The value of the DSUs is determined by the closing price of the company's stock on the grant date, which is a typical valuation method.

Stakeholder Impact

• The acquisition of DSUs by a director can positively influence shareholder sentiment by demonstrating alignment of interests.
• Employees may view this as a positive sign of company stability and growth.

Key Dates