Form 4: CarMax Executive James Lyski Reports Stock Option Grant and Tax Withholding
SEC Form 4
James Lyski, EVP, Chief Growth & Strategy Officer at CarMax, reports the acquisition of stock options and a disposition of shares to cover tax obligations.
Summary
- On May 1, 2025, James Lyski, EVP, Chief Growth & Strategy Officer of CarMax Inc., was granted 38,124 stock options with an exercise price of $65.52.
- These options become exercisable in four equal installments starting May 1, 2026, and annually thereafter until May 1, 2029.
- On May 2, 2025, Lyski disposed of 1,444 shares of common stock at a price of $66.71 per share to satisfy tax withholding obligations.
- Following these transactions, Lyski directly owns 27,164 shares of CarMax common stock and 38,124 stock options.
Sentiment
Score: 6
Explanation: The sentiment is neutral. It's a routine disclosure of executive compensation and tax-related transactions. There's no indication of positive or negative performance, just standard reporting.
Positives
- The grant of stock options to a key executive like James Lyski aligns his interests with those of the shareholders, incentivizing him to drive company growth and performance.
Future Outlook
The document does not contain specific forward-looking statements about CarMax's future performance, but the vesting schedule of the stock options suggests a multi-year incentive plan for the executive.
Industry Context
Executive compensation, including stock options, is a common practice in the automotive retail industry to incentivize performance and align management's interests with those of shareholders. This filing is a routine disclosure of such compensation.
Comparison to Industry Standards
- Stock option grants are a standard component of executive compensation packages in the retail and automotive industries.
- Companies like AutoNation (AN), Group 1 Automotive (GPI), and Penske Automotive Group (PAG) also utilize stock options as part of their executive compensation plans.
- The vesting schedule and exercise price are typical for such grants, designed to incentivize long-term performance.
Stakeholder Impact
- Shareholders are informed about executive compensation practices.
- Employees may be indirectly affected by the incentives provided to executives through stock options.
Key Dates
| Date | Description |
|---|---|
| 05/01/2025 | Date of stock options grant (38,124 options at $65.52) and the date the stock options become exercisable. |
| 05/02/2025 | Date of disposition of 1,444 shares at $66.71 for tax withholding. |
| 05/01/2026 | First vesting date for one-fourth of the stock options. |
| 05/01/2027 | Second vesting date for one-fourth of the stock options. |
| 05/01/2028 | Third vesting date for one-fourth of the stock options. |
| 05/01/2029 | Fourth vesting date for one-fourth of the stock options. |
| 05/01/2032 | Expiration date of the stock options. |
| 05/05/2025 | Date of signature by attorney-in-fact. |
Keywords
CarMax, Stock Options, Form 4, James Lyski, Executive Compensation, Beneficial Ownership, KMX
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