Form 4: Armstrong World Industries Director Receives Annual Equity Grant

Barbara Loughran, a Director at Armstrong World Industries Inc. (AWI), was granted 827 restricted stock units as part of her annual compensation.

Summary

• Barbara Loughran, a Director of Armstrong World Industries Inc. (AWI), acquired 827 shares of Common Stock in the form of Restricted Stock Units (RSUs).
• The transaction occurred on June 13, 2025, and was an acquisition (A) of securities.
• The RSUs were granted under the 2016 Directors Stock Unit Plan and are part of the Issuer's non-employee Director Compensation Program.
• The grant date fair value of the units was calculated using the closing stock price of AWI common shares on June 13, 2025, which was $151.27 per unit.
• Following this transaction, Barbara Loughran beneficially owns a total of 8,868 shares, which includes vested and unvested units, as well as units not yet acquirable.
• The units vest on the earlier of (i) the date of the next annual shareholders meeting following the grant, (ii) the death or total and permanent disability of the Director, or (iii) the date of any Change in Control as defined in the 2016 Plan.
• Vested units become acquirable by the Director, at their election, either at the time of vesting or at the time of the Director's termination of service.

Sentiment

Score: 7

Explanation: The sentiment is positive as the grant of restricted stock units to a director aligns their interests with shareholders and is a standard, expected component of compensation, reflecting stable corporate governance practices.

Positives

• The grant of restricted stock units aligns the interests of the director, Barbara Loughran, with those of the shareholders, as her compensation is tied to the company's stock performance.
• This RSU grant is a standard component of the company's non-employee Director Compensation Program, indicating a structured and transparent approach to executive remuneration.

Future Outlook

The document does not provide forward-looking statements or guidance beyond the vesting conditions for the granted restricted stock units.

Industry Context

The grant of restricted stock units to non-employee directors is a common practice across various industries, including manufacturing and building materials, to attract and retain qualified board members and align their interests with long-term shareholder value.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a component of non-employee director compensation is a widely adopted practice among publicly traded companies, including those in the building materials sector like Armstrong World Industries.
• This compensation structure is consistent with global benchmarks for corporate governance, aiming to align director incentives with company performance and shareholder returns.

Corporate Governance

Related Party Transactions

• The grant of restricted stock units to Barbara Loughran, a Director, constitutes a related party transaction as it involves compensation from the company to a member of its board of directors. This is a standard and disclosed form of related party dealing.

Stakeholder Impact

• Shareholders: Positive impact due to increased alignment of director's interests with long-term shareholder value through equity ownership.
• Director (Barbara Loughran): Positive impact through receipt of equity compensation as part of her service retainer.

Next Steps

• The granted restricted stock units will vest on the earlier of the next annual shareholders meeting, the director's death or total permanent disability, or a Change in Control.
• Vested units will become acquirable by the Director at their election, either at the time of vesting or upon termination of service.

Key Dates

Keywords

Armstrong World Industries, AWI, SEC Form 4, Restricted Stock Units, RSU, Director Compensation, Equity Grant, Insider Transaction, Corporate Governance