Form 4: CarMax Executive Mohammad Shamim Reports Stock Option Grant and Tax Withholding
SEC Form 4 Filing
EVP and CITO of CarMax, Mohammad Shamim, reports the acquisition of stock options and a disposition of shares for tax withholding.
Summary
- On May 1, 2025, Mohammad Shamim, EVP and CITO of CarMax, was granted 35,265 stock options with an exercise price of $65.52.
- These options become exercisable in four equal installments starting May 1, 2026.
- On May 2, 2025, Shamim disposed of 1,023 shares of common stock at a price of $66.71 per share to cover tax obligations.
- Following these transactions, Shamim directly owns 15,538 shares of CarMax common stock and 35,265 stock options.
Sentiment
Score: 6
Explanation: The document is neutral in tone, reporting routine transactions related to executive compensation. The stock option grant is a positive incentive, but the tax withholding is a standard procedure.
Positives
- The grant of stock options to a key executive like the EVP and CITO can be seen as an incentive to align their interests with the long-term success of the company.
Industry Context
This filing is a routine disclosure related to executive compensation and is typical for publicly traded companies like CarMax. It provides transparency into the equity-based compensation of key executives.
Comparison to Industry Standards
- Stock option grants are a common component of executive compensation packages in the retail and automotive industries.
- Companies like AutoNation (AN) and Penske Automotive Group (PAG) also utilize stock options as part of their executive compensation plans.
- The vesting schedule of the options (25% per year over four years) is a fairly standard vesting schedule.
Stakeholder Impact
- Shareholders may view the stock option grant as a positive incentive for the executive team.
- The transactions have a minimal direct impact on employees, customers, suppliers, or creditors.
Key Dates
| Date | Description |
|---|---|
| 05/01/2025 | Date of stock options grant (35,265 options at $65.52) and the date the SARS become exercisable only following a change in control of the Company. |
| 05/02/2025 | Date of disposition of 1,023 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, Executive Compensation, Mohammad Shamim, KMX, Insider Trading
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