Form 4: EchoStar Executives Report Changes in Beneficial Ownership Following GRAT Distributions
SEC Form 4 Filing
Charles and Cantey Ergen report changes in their beneficial ownership of EchoStar stock following distributions from previously established Grantor Retained Annuity Trusts (GRATs).
Summary
- Charles Ergen, Chairman of EchoStar, and Cantey Ergen, Senior Advisor, filed Form 4 documents detailing changes in their beneficial ownership of EchoStar Corporation [SATS] stock.
- The filings reflect distributions of Class B shares to Mr. Ergen from the Ergen Two-Year May 2023 DISH GRAT and the Ergen Two-Year May 2024 SATS GRAT on May 12 and 13, 2025, respectively.
- These distributions resulted in the expiration of the 2023 May GRAT and a reduction in the holdings of the 2024 May GRAT.
- The filings also detail the holdings of several other GRATs established by Mr. Ergen, including the 2023 June SATS GRAT, the 2023 June DISH GRAT, the 2023 December GRAT, and the 2024 July GRAT, with Mrs. Ergen serving as trustee for each.
- The GRATs hold varying amounts of Class B shares, which are convertible into Class A shares.
- The filings also indicate indirect ownership through various entities such as 401(k) accounts, charitable foundations, Telluray Holdings, LLC, and nXgen Opportunities, LLC.
Sentiment
Score: 5
Explanation: The document is a standard regulatory filing, so the sentiment is neutral.
Positives
- The distributions from the GRATs represent a planned transfer of wealth to Mr. Ergen.
Future Outlook
The 2024 May GRAT is scheduled to expire on May 13, 2026, the 2023 June SATS GRAT is scheduled to expire on June 23, 2025, the 2023 June DISH GRAT is scheduled to expire on June 26, 2025, the 2023 December GRAT is scheduled to expire on December 22, 2025, and the 2024 July GRAT is scheduled to expire on July 10, 2026.
Industry Context
Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders.
Stakeholder Impact
- The changes in ownership may be of interest to shareholders, but the distributions are from pre-existing GRATs and do not represent new sales or purchases on the open market.
Key Dates
| Date | Description |
|---|---|
| June 23, 2023 | Mr. Ergen established the Ergen Two-Year June 2023 SATS GRAT. |
| June 26, 2023 | Mr. Ergen established the Ergen Two-Year June 2023 DISH GRAT. |
| December 22, 2023 | Mr. Ergen established the Ergen Two-Year December 2023 SATS GRAT. |
| July 10, 2024 | Mr. Ergen established the Ergen Two-Year July 2024 SATS GRAT. |
| May 12, 2025 | Distribution from the Ergen Two-Year May 2023 DISH GRAT to Mr. Ergen and expiration of the GRAT. |
| May 13, 2025 | Distribution from the Ergen Two-Year May 2024 SATS GRAT to Mr. Ergen. |
| May 13, 2026 | Scheduled expiration of the Ergen Two-Year May 2024 SATS GRAT. |
| June 23, 2025 | Scheduled expiration of the Ergen Two-Year June 2023 SATS GRAT. |
| June 26, 2025 | Scheduled expiration of the Ergen Two-Year June 2023 DISH GRAT. |
| December 22, 2025 | Scheduled expiration of the Ergen Two-Year December 2023 SATS GRAT. |
| July 10, 2026 | Scheduled expiration of the Ergen Two-Year July 2024 SATS GRAT. |
Keywords
EchoStar, Ergen, Beneficial Ownership, Form 4, SATS, GRAT, Class B Shares, Class A Shares, Distribution
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