Form 4: Allison Transmission Director Richard Lavin Reports Acquisition of Deferred Stock Units

Director Richard P. Lavin reports the acquisition of 309 deferred stock units (DSUs) in Allison Transmission Holdings Inc.

Summary

• On November 8, 2024, Richard P. Lavin, a director of Allison Transmission Holdings Inc., acquired 309 deferred stock units (DSUs).
• These DSUs represent a quarterly payment of the director's annual retainer and other fees under the company's compensation policy.
• Each DSU is equivalent to one share of Allison Transmission's common stock and will be payable in common stock or cash upon separation from service or a change in control.
• The price used to calculate the number of DSUs was $118.96 per share, the closing price of the company's common stock on the date of grant.
• Following the transaction, Lavin directly owns 32,880 shares.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard director compensation practices and aligns director interests with shareholders.

Positives

• The acquisition of DSUs aligns the director's interests with those of the shareholders.
• The compensation policy provides a structured approach to director compensation.

Future Outlook

The DSUs will be payable in common stock or cash at the earlier of the reporting person's separation from service or a change in control.

Industry Context

Director compensation through deferred stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Many companies, including peers like Dana Incorporated and Meritor (now Cummins), use similar deferred stock unit programs as part of their director compensation packages.
• These programs typically vest over time and are paid out upon retirement or separation from the company, aligning director interests with long-term shareholder value.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director compensation with company performance.

Key Dates