Form 4: DaVita Inc. CEO Javier Rodriguez Executes Stock Appreciation Rights, Disposes of Shares
SEC Form 4 Filing
Javier Rodriguez, CEO of DaVita Inc., exercised stock appreciation rights and disposed of shares to cover the exercise price and tax obligations.
Summary
- On August 20, 2024, Javier Rodriguez, the CEO of DaVita Inc., exercised stock appreciation rights (SARs) converting them into 750,000 shares of common stock at a price of $67.8.
- He then disposed of 334,166 shares at $152.17 to cover the base price of the SARs exercise.
- Additionally, 181,928 shares were withheld at $152.17 to satisfy tax withholding obligations related to the SARs exercise.
- Following these transactions, Rodriguez directly owns 937,835 shares of DaVita Inc. common stock.
- The stock appreciation rights were granted on November 4, 2019, vested in two tranches on November 4, 2022, and November 4, 2023, and were approved by the Compensation Committee of DaVita's Board of Directors subject to stockholder approval of a plan amendment which was granted on January 23, 2020.
Sentiment
Score: 5
Explanation: Neutral sentiment as the filing reflects standard executive compensation practices and does not indicate any fundamental change in the company's prospects.
Industry Context
Form 4 filings are standard disclosures required by the SEC when company insiders, like the CEO, trade their company's stock. This provides transparency to the market.
Stakeholder Impact
- The transaction has a minor impact on shareholders as it involves the exercise of previously granted stock options and subsequent sale of shares to cover costs.
Key Dates
| Date | Description |
|---|---|
| 11/04/2019 | Date of original Stock Appreciation Rights grant by the Compensation Committee of DaVita's Board of Directors. |
| 01/23/2020 | Date DaVita's stockholder's approved the Plan Amendment. |
| 11/04/2022 | First vesting date (50%) of the Stock Appreciation Rights. |
| 11/04/2023 | Second vesting date (50%) of the Stock Appreciation Rights. |
| 08/20/2024 | Date of transaction: exercise of stock appreciation rights and disposal of shares. |
| 08/22/2024 | Date of Form 4 filing. |
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