Form 4: Encompass Health Director Boosts Stake Through RSU Awards and Deferred Compensation

Encompass Health Corp. Director Christopher R. Reidy increased his beneficial ownership of company common stock through the acquisition of Restricted Stock Units and shares purchased via a deferred compensation plan.

Summary

• Christopher R. Reidy, a Director of Encompass Health Corp (EHC), increased his beneficial ownership of the company's common stock.
• On July 15, 2025, Reidy acquired 17 Restricted Stock Units (RSUs) at a price of $0, related to a $0.17 per share common stock dividend payment. The closing price on that date was $107.28.
• On July 16, 2025, Reidy acquired 333 shares of common stock at a weighted average price of $106.89. These shares were purchased through the Directors Deferred Stock Investment Plan, funded by deferred director fees and reinvested dividends.
• Following these transactions, Reidy's direct beneficial ownership of Encompass Health common stock increased to 14,781 shares.

Sentiment

Score: 7

Explanation: The transactions reflect an increase in director ownership through pre-planned mechanisms, indicating continued alignment of management interests with shareholders and confidence in the company.

Positives

• Director Christopher R. Reidy increased his beneficial ownership in Encompass Health Corp, signaling continued confidence in the company.
• The acquisition of shares through the Directors Deferred Stock Investment Plan indicates management's long-term alignment with shareholder interests by reinvesting fees into company stock.

Future Outlook

NA

Management Comments

• The Directors Deferred Stock Investment Plan allows non-employee directors to defer fixed percentages of their director fees for the purchase of company common stock, aligning their interests with shareholders.
• Additional Restricted Stock Units are credited to non-employee director accounts in connection with common stock dividend payments, further aligning director compensation with company performance.

Industry Context

NA

Corporate Governance

Related Party Transactions

• Acquisition of 17 Restricted Stock Units (RSUs) by Director Christopher R. Reidy, credited in connection with common stock dividend payments.
• Acquisition of 333 shares by Director Christopher R. Reidy through the Directors Deferred Stock Investment Plan, funded by deferred director fees and reinvested dividends.

Stakeholder Impact

• Shareholders: Increased director ownership may signal confidence, potentially positively influencing investor sentiment.
• Management/Directors: Compensation structure aligns their financial interests with the company's performance.

Key Dates

Recommendation

Keywords

EHC, Encompass Health Corp, Christopher R. Reidy, Form 4, Insider Trading, Director Stock Ownership, Restricted Stock Units, Deferred Compensation, Healthcare