Form 4: Skyline Champion Corp: Executive Timothy Mark Larson Reports Acquisition of Common Stock and Grant of Restricted Stock Units

Chief Growth Officer Timothy Mark Larson reports acquiring common stock and receiving restricted stock units (RSUs) and performance-based restricted stock units (PRSUs) from Skyline Champion Corp.

Summary

• Timothy Mark Larson, Chief Growth Officer of Skyline Champion Corp, filed a Form 4 on April 02, 2024, reporting transactions that occurred on March 29, 2024.
• Larson acquired 7,911 shares of common stock at $85.01 per share through the grant of restricted stock units (RSUs) under the company's 2018 Equity Incentive Plan.
• He also acquired 7,911 shares of common stock at $85.01 per share through the grant of performance-based restricted stock units (PRSUs) under the same plan.
• Following these transactions, Larson beneficially owns 56,439 shares of Skyline Champion Corp.
• The RSUs vest in three equal installments on the anniversaries of March 29, 2024, contingent upon continuous service.
• The vesting of the PRSUs is 60% dependent on Skyline Champion Corp's total shareholder return relative to other companies from March 29, 2024, to March 29, 2027, and 40% dependent on the company's market share of single-family completions as of January 31, 2027, also contingent upon continuous service.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The grant of RSUs and PRSUs is a standard practice, but the performance-based vesting criteria suggest confidence in the company's future performance.

Positives

• The grant of RSUs and PRSUs aligns executive compensation with shareholder value and company performance.
• The vesting conditions of the PRSUs incentivize long-term growth and market share gains.

Risks

• The vesting of RSUs and PRSUs is contingent upon continuous service, creating a potential risk of forfeiture if Larson leaves the company.
• The performance-based vesting criteria for PRSUs introduce uncertainty related to market conditions and competitive dynamics.

Future Outlook

The vesting of the RSUs and PRSUs is contingent upon future performance and continued service, aligning executive incentives with long-term company success.

Industry Context

The granting of equity-based compensation is a common practice in the industry to incentivize executives and align their interests with those of shareholders.

Comparison to Industry Standards

• Equity grants are a standard component of executive compensation packages in publicly traded companies, particularly in the manufacturing and construction sectors.
• Companies like NVR, Inc. and D.R. Horton also utilize stock options and restricted stock units to incentivize their executives.
• The specific vesting criteria, such as total shareholder return and market share targets, are tailored to Skyline Champion Corp's strategic goals and competitive landscape.

Stakeholder Impact

• Shareholders may view the equity grants positively as they align executive compensation with company performance.
• Employees may be motivated by the potential for increased company value and market share.

Key Dates