Form 4: Elevance Health Exec's Equity Transactions

Elevance Health's EVP & President, Commercial, Charles Morgan Kendrick JR, reported a series of equity transactions including RSU and PSU grants, stock option awards, and tax-related stock dispositions.

Summary

• Charles Morgan Kendrick JR, EVP & President, Commercial of Elevance Health, Inc. (ELV), reported several equity transactions.
• On March 2, 2026, 1,211 shares of Common Stock were disposed of at $294.07 per share to cover tax liabilities related to the vesting of previously granted restricted stock.
• On March 2, 2026, 4,017 restricted share units (RSUs) were acquired at a price of $0. These RSUs will vest in three equal annual installments of 1,339 shares on March 2, 2027, March 2, 2028, and March 2, 2029.
• On March 2, 2026, 2,532 performance-based restricted share units (PSUs) were acquired at a price of $0, with restrictions lapsing on the same date.
• On March 3, 2026, an additional 467 shares of Common Stock were disposed of at $284.03 per share for tax withholding.
• On March 2, 2026, 15,870 employee stock options were granted with an exercise price of $294.07. These options become exercisable in three annual installments of 5,290 shares, starting March 2, 2027, and expire on March 2, 2036.
• Following these transactions, the reporting person directly beneficially owns 14,987 shares of Common Stock and 15,870 employee stock options.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a routine disclosure of executive compensation, with the grants of RSUs, PSUs, and stock options indicating ongoing executive incentive alignment, slightly outweighing the tax-related dispositions.

Positives

• Grant of 4,017 restricted share units (RSUs) at $0, aligning executive interests with long-term shareholder value through future vesting.
• Grant of 2,532 performance-based restricted share units (PSUs) at $0, indicating achievement of performance targets.
• Award of 15,870 employee stock options with an exercise price of $294.07, providing an incentive for future stock price appreciation.

Negatives

• Disposition of 1,211 shares of Common Stock at $294.07 and 467 shares at $284.03 to satisfy tax withholding obligations, reducing direct beneficial ownership.

Future Outlook

Restricted share units (RSUs) will vest in three annual installments of 1,339 shares on March 2, 2027, March 2, 2028, and March 2, 2029. Employee stock options will become exercisable in three annual installments of 5,290 shares, beginning on March 2, 2027, and will expire on March 2, 2036.

Industry Context

StockSavvy.ai notes that these transactions reflect standard executive compensation practices within the healthcare insurance industry, utilizing a mix of restricted stock units, performance-based units, and stock options to incentivize long-term performance and align management interests with shareholder returns.

Stakeholder Impact

• Shareholders: Executive compensation structure aligns management incentives with long-term stock performance, potentially benefiting shareholders if performance targets are met and stock value increases.
• Employees (specifically the reporting person): Direct impact on personal equity holdings and future compensation based on company performance.

Next Steps

• Vesting of 1,339 restricted share units on March 2, 2027.
• First installment of 5,290 employee stock options becoming exercisable on March 2, 2027.
• Vesting of 1,339 restricted share units on March 2, 2028.
• Vesting of 1,339 restricted share units on March 2, 2029.
• Expiration of employee stock options on March 2, 2036.

Key Dates

Keywords

Elevance Health, ELV, Form 4, Insider Transaction, Executive Compensation, Stock Options, Restricted Stock Units, Performance Share Units