Form 4: DaVita CCO Hearty Reports Equity Awards & Tax Withholdings

DaVita's Chief Compliance Officer, James O. Hearty, reported the acquisition of restricted stock units and stock appreciation rights, alongside dispositions for tax withholding purposes.

Summary

• James O. Hearty, DaVita's Chief Compliance Officer, acquired 1,128 restricted stock units (RSUs) on March 15, 2026, which are scheduled to vest 50% on March 15, 2029, and 50% on March 15, 2030.
• Hearty also acquired 3,050 Stock Appreciation Rights (SARs) on March 15, 2026, with an exercise price of $150.72, vesting 50% on March 15, 2029, and 50% on March 15, 2030, and expiring on March 15, 2031.
• A total of 11,578 shares of common stock were disposed of on March 15, 2026, at a price of $150.72 per share, to satisfy tax withholding obligations related to the vesting of various performance stock units and restricted stock units.
• Following these transactions, Hearty beneficially owns 38,137 shares of common stock and 3,050 Stock Appreciation Rights.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive filing, reflecting standard executive compensation practices and the alignment of management incentives with long-term company performance, without indicating any significant operational or financial shifts.

Positives

• The acquisition of 1,128 restricted stock units and 3,050 stock appreciation rights indicates continued equity-based compensation for a key executive, aligning management's interests with shareholder value.

Negatives

• The disposition of 11,578 shares of common stock, valued at $150.72 per share, represents a reduction in direct share ownership, although this was primarily for tax withholding purposes related to vested awards.

Future Outlook

The filing indicates future vesting schedules for restricted stock units and stock appreciation rights on March 15, 2029, and March 15, 2030, aligning executive incentives with long-term company performance.

Industry Context

StockSavvy.ai notes that equity-based compensation, including RSUs and SARs, is a standard practice across the healthcare services industry for retaining and incentivizing senior executives. The structure of these awards, with multi-year vesting, is typical for promoting long-term strategic alignment.

Comparison to Industry Standards

• The use of restricted stock units (RSUs) and stock appreciation rights (SARs) as executive compensation is consistent with practices observed at peer companies in the healthcare provider sector, such as Fresenius Medical Care AG & Co. KGaA (FMS) and Baxter International Inc. (BAX), which also utilize long-term incentive plans tied to equity.
• The multi-year vesting schedule (e.g., 50% in 2029, 50% in 2030) for the new awards aligns with common industry benchmarks designed to foster executive retention and long-term performance focus, similar to compensation structures seen in large-cap healthcare companies.
• The disposition of shares solely for tax withholding purposes upon vesting is a standard and expected event in equity compensation plans across all industries, not indicative of a discretionary sale by the executive.

Stakeholder Impact

• Shareholders: The equity awards align executive interests with shareholder value creation over the long term. The tax-related dispositions are a routine part of equity compensation and do not reflect a change in executive confidence.
• Employees: No direct impact on general employees is indicated.

Next Steps

• Vesting of 50% of the 1,128 restricted stock units on March 15, 2029.
• Vesting of 50% of the 3,050 stock appreciation rights on March 15, 2029.
• Vesting of the remaining 50% of the 1,128 restricted stock units on March 15, 2030.
• Vesting of the remaining 50% of the 3,050 stock appreciation rights on March 15, 2030.
• Expiration of the 3,050 stock appreciation rights on March 15, 2031.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation activities, including the grant of new equity awards and the disposition of shares for tax purposes upon vesting of prior awards. Such transactions are standard and do not typically signal a change in the company's fundamental outlook or warrant a shift in investment strategy. The long-term vesting schedules for the new awards suggest continued executive alignment with future company performance, supporting a 'hold' recommendation for existing investors.

Keywords

DaVita, DVA, Form 4, Insider Trading, Executive Compensation, Restricted Stock Units, Stock Appreciation Rights, Tax Withholding, Beneficial Ownership