4/A: Champion Homes Executive Reports Stock Transaction Following Performance-Based Vesting

Timothy A. Burkhardt, VP & Controller of Champion Homes, reports a transaction involving common stock due to the vesting of performance-based restricted stock units (PRSUs) at 72.7% of the target level.

Summary

• On January 4, 2025, Timothy A. Burkhardt, VP & Controller of Champion Homes, engaged in a transaction involving the company's common stock.
• This transaction was related to the vesting of performance-based restricted stock units (PRSUs) granted under the 2018 Equity Incentive Plan.
• The PRSUs vested at 72.7% of the initial grant, based on the company's total shareholder return and market share relative to designated companies over the performance period ending January 4, 2025.
• 810 shares were disposed of at a price of $90.43.
• Following the transaction, Burkhardt directly owns 36,529 shares of common stock.
• This Form 4/A is an amendment to correct the number of shares withheld and the amount of securities beneficially owned following the reported transaction in the original Form 4.

Sentiment

Score: 6

Explanation: The sentiment is neutral. While the PRSUs did not vest at the target level, the vesting itself indicates some level of performance achievement. The executive's continued ownership suggests confidence in the company.

Positives

• The vesting of PRSUs indicates that some performance goals were achieved, although not at the target (100%) level.
• The executive maintains a significant direct ownership stake in the company with 36,529 shares.

Negatives

• The PRSUs vested at 72.7% of the target level, indicating that the company did not fully achieve its performance goals related to total shareholder return and market share.
• 810 shares were disposed of at a price of $90.43.

Risks

• The vesting of PRSUs below the target level could indicate potential challenges in achieving performance goals.
• Future performance may not meet expectations, impacting future vesting of equity awards.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. The vesting of PRSUs is a common practice to align executive compensation with company performance.

Comparison to Industry Standards

• Performance-based equity awards are a common compensation tool across various industries, including manufacturing and homebuilding, to incentivize executives to achieve specific financial and strategic goals.
• Companies like Lennar and D.R. Horton also utilize similar equity compensation plans with performance metrics tied to shareholder return and market share.
• The vesting percentage of 72.7% can be compared to the vesting outcomes of similar performance-based awards at peer companies to assess Champion Homes' relative performance.

Stakeholder Impact

• Shareholders may view the vesting of PRSUs as an indicator of management's performance and alignment with shareholder interests.
• Employees may be affected by the company's performance, which impacts the vesting of their own equity awards.

Key Dates