Form 4: Allison Transmission Director Lavin Receives Deferred Stock Units

Director Richard P. Lavin receives deferred stock units from Allison Transmission Holdings Inc. as part of director compensation.

Summary

• Richard P. Lavin, a director at Allison Transmission Holdings Inc., received deferred stock units (DSUs) on May 8, 2024, and May 9, 2024, as part of his director compensation.
• On May 8, 2024, 425 DSUs were granted, calculated based on a closing price of $75.82 per share.
• These DSUs represent a quarterly payment of the director's annual retainer and other fees.
• On May 9, 2024, 2,017 DSUs were granted, calculated based on a closing price of $76.81 per share.
• These DSUs represent the portion of the reporting person's annual equity award.
• The DSUs vest on the date of the next annual meeting of the stockholders of the Company.
• Following these transactions, Lavin directly holds 32,138 DSUs.
• Each DSU is the economic equivalent of one share of Allison Transmission's common stock and will be payable in common stock or cash at the earlier of separation from service or a change in control.

Sentiment

Score: 7

Explanation: The document is a routine disclosure of director compensation, which is generally viewed neutrally. The fact that the director is receiving equity-based compensation could be seen as a positive sign, aligning their interests with shareholders.

Positives

• The granting of DSUs aligns the director's interests with those of the shareholders.
• The DSUs are part of a well-defined director compensation policy.
• The vesting of DSUs at the next annual meeting encourages continued service.

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. DSUs earn dividend equivalents when dividends are declared on the Company's common stock.

Industry Context

Director compensation in the form of stock and deferred stock units is a common practice among publicly traded companies to align the interests of directors with those of shareholders. This Form 4 filing provides transparency into the compensation structure for Allison Transmission's directors.

Comparison to Industry Standards

• Director compensation packages vary across industries and company sizes.
• Companies like Dana Incorporated and Meritor (now part of Cummins) also utilize equity-based compensation for their directors.
• The specific amount and type of equity awards are typically benchmarked against peer companies to ensure competitiveness.

Stakeholder Impact

• Shareholders: Provides transparency into director compensation.
• Employees: No direct impact.
• Company: No direct impact.

Key Dates