Form 4: Allison Transmission Executive Scroggins Exercises Stock Options and Sells Shares to Cover Taxes
SEC Form 4
Eric C. Scroggins, VP, Gen. Counsel & Assist. Sec of Allison Transmission Holdings, Inc., reports exercising stock options and selling shares to cover tax obligations.
Summary
- Eric C. Scroggins, a VP, Gen. Counsel & Assist. Sec at Allison Transmission Holdings, Inc. (ALSN), filed a Form 4 detailing changes in beneficial ownership.
- On February 21, 2025, Scroggins exercised 739 Restricted Stock Units (RSUs) and 8 Dividend Equivalent Rights (DERs), receiving a corresponding number of common stock shares.
- On February 22, 2025, Scroggins exercised 927 Restricted Stock Units (RSUs) and 27 Dividend Equivalent Rights (DERs), receiving a corresponding number of common stock shares.
- On February 23, 2025, Scroggins exercised 1,061 Restricted Stock Units (RSUs) and 51 Dividend Equivalent Rights (DERs), receiving a corresponding number of common stock shares.
- To cover tax withholding obligations, 260, 304 and 327 shares were withheld by ALSN on February 21, 2025, February 22, 2025, and February 23, 2025, respectively, at a price of $100.67 per share.
- Following these transactions, Scroggins directly owns 14,532 shares of ALSN common stock.
Sentiment
Score: 5
Explanation: This is a routine filing related to executive compensation and does not indicate any significant positive or negative sentiment. It reflects standard practice.
Industry Context
Form 4 filings are a routine part of the financial markets, providing transparency into the transactions of company insiders. These filings are closely watched by investors seeking insights into management's perspective on the company's stock.
Comparison to Industry Standards
- Executive compensation packages often include stock options and restricted stock units to align management's interests with those of shareholders.
- The vesting and exercise of these equity awards, followed by sales to cover taxes, are standard practices.
- Comparable companies in the automotive and industrial sectors, such as Cummins, Dana, and BorgWarner, also utilize similar equity-based compensation strategies.
Stakeholder Impact
- The transactions have a minimal impact on shareholders, as they are related to the exercise of previously granted equity awards.
- The company's withholding of shares to cover taxes ensures compliance with tax regulations.
Key Dates
| Date | Description |
|---|---|
| 02/21/2024 | Date of grant for some of the settled restricted stock units. |
| 02/22/2023 | Date of grant for some of the settled restricted stock units. |
| 02/23/2022 | Date of grant for some of the settled restricted stock units. |
| 02/21/2025 | Date of first transaction involving settlement of RSUs and DERs. |
| 02/22/2025 | Date of second transaction involving settlement of RSUs and DERs. |
| 02/23/2025 | Date of third transaction involving settlement of RSUs and DERs. |
| 02/25/2025 | Date of signature on the Form 4 filing. |
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