Form 4: Centene CFO Asher Andrew Lynn Reports Changes in Beneficial Ownership
SEC Form 4 Filing
Centene's Chief Financial Officer, Asher Andrew Lynn, reports changes in beneficial ownership of company stock, including shares withheld for taxes and the vesting of restricted stock units.
Summary
- On March 15, 2024, Centene's CFO, Asher Andrew Lynn, reported changes in his beneficial ownership of Centene stock.
- 4,802 shares were withheld for taxes upon the vesting of previously reported restricted stock units at a price of $76.05 per share.
- Lynn also acquired 91,305 shares of common stock through an award, including 31,957 restricted stock units vesting in three annual installments and 59,348 performance stock units reported at target level performance.
- The actual number of performance stock units vesting on March 15, 2027, depends on meeting three-year performance conditions.
- Following these transactions, Lynn beneficially owns 480,844.48 shares of Centene common stock.
- Lynn also holds options to buy 13,449 shares of common stock at an exercise price of $81.85, which may become exercisable on or after December 15, 2024, if Centene's stock price equals or exceeds $100 per share for 20 consecutive trading days.
Sentiment
Score: 6
Explanation: The document is a standard SEC filing related to executive compensation. It doesn't contain overtly positive or negative information, but the vesting of stock options and units suggests confidence in the company's future performance.
Positives
- The vesting of restricted stock units and performance stock units suggests a belief in the company's future performance by the CFO.
Future Outlook
The vesting of performance stock units is contingent upon meeting three-year performance conditions by March 15, 2027.
Industry Context
Form 4 filings are a routine part of executive compensation and provide transparency into the alignment of management's interests with those of shareholders.
Comparison to Industry Standards
- Executive compensation packages often include a mix of salary, stock options, and restricted stock units to incentivize performance.
- The vesting schedules and performance conditions attached to the stock units are typical in the healthcare industry to align executive compensation with long-term value creation.
- Comparing Centene's executive compensation structure with peers like UnitedHealth Group (UNH) or CVS Health (CVS) would provide further context.
Stakeholder Impact
- The reported transactions provide transparency to shareholders regarding the CFO's stake in the company.
- The vesting of performance-based stock units aligns management's interests with those of shareholders, incentivizing them to improve company performance.
Key Dates
| Date | Description |
|---|---|
| 12/15/2021 | Date of Performance Stock Option grant. |
| 03/15/2024 | Date of the reported transactions (stock withholding and award). |
| 03/15/2027 | Date when performance stock units may vest, contingent on performance conditions. |
| 12/15/2031 | Expiration date of the Common Stock Option (right to buy). |
| 03/19/2024 | Date of signature on the Form 4 filing. |
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