Form 4: Ergen Establishes New GRAT, Transfers EchoStar Shares
SEC Form 4
Charles W. Ergen, Chairman of EchoStar, reports the establishment of a new Grantor Retained Annuity Trust (GRAT) and the transfer of EchoStar Class B shares into it, along with updates on existing GRAT holdings.
Summary
- Charles W. Ergen, Chairman of EchoStar, filed a Form 4 detailing changes in beneficial ownership of EchoStar securities.
- On July 10, 2024, Mr. Ergen established a new GRAT, the Ergen Two-Year July 2024 SATS GRAT, and contributed 26,500,000 Class B shares to it.
- Cantey M. Ergen, also a reporting person as a Director and Senior Advisor, serves as the trustee of the 2024 July GRAT.
- The 2024 July GRAT is scheduled to expire on July 10, 2026.
- The filing also updates the holdings of several existing GRATs established by Mr. Ergen, including the 2022 December GRAT, 2023 May DISH GRAT, 2023 June SATS GRAT, 2023 December GRAT, 2024 May GRAT and 2023 June DISH GRAT.
- These GRATs hold varying amounts of EchoStar Class B shares, with expiration dates ranging from December 2024 to June 2026.
- Mrs. Ergen serves as the trustee for all of these GRATs.
- The filing also indicates direct ownership by Mr. Ergen of 11,353,060 Class A Common Stock.
- The filing also indicates indirect ownership by Mr. Ergen of Class A Common Stock through various means including 401(k), spouse, child, charitable foundation and Telluray Holdings, LLC.
Sentiment
Score: 5
Explanation: The document is a standard regulatory filing, so the sentiment is neutral.
Future Outlook
The GRATs are scheduled to expire on various dates, with the 2024 July GRAT expiring on July 10, 2026.
Industry Context
This filing is a routine disclosure related to executive compensation and estate planning strategies, specifically the use of GRATs to transfer wealth.
Key Dates
| Date | Description |
|---|---|
| December 21, 2022 | Mr. Ergen established the Ergen Two-Year December 2022 SATS GRAT. |
| May 12, 2023 | Mr. Ergen established the Ergen Two-Year May 2023 DISH GRAT. |
| 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. |
| May 13, 2024 | Charles W. Ergen established the Ergen Two-Year May 2024 SATS GRAT. |
| July 10, 2024 | Charles W. Ergen established the Ergen Two-Year July 2024 SATS GRAT and contributed 26,500,000 Class B shares. |
| July 10, 2026 | The 2024 July GRAT is scheduled to expire. |
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