Form 4: Patricia Anne Maryland Acquires Additional Encompass Health Corp Restricted Stock Units Due to Dividend Payment

Director Patricia Anne Maryland acquired 24 restricted stock units of Encompass Health Corp due to a dividend payment on October 15, 2024.

Summary

• Patricia Anne Maryland, a director of Encompass Health Corp, acquired 24 restricted stock units (RSUs) on October 15, 2024.
• The acquisition is a result of a dividend payment on Encompass Health common stock.
• According to outstanding restricted stock unit award agreements, additional RSUs are credited to each non-employee director's account in connection with common stock dividend payments.
• The number of RSUs credited is calculated by multiplying the number of RSUs in each director's account on the dividend record date by the per share dividend, and then dividing by the closing price on the dividend payment date.
• On October 15, 2024, Encompass Health paid a dividend of $0.17 per share, and the closing price was $96.33.
• Following the transaction, Maryland directly owns 13,268 shares of Encompass Health common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating stable corporate governance and alignment of interests with shareholders. The sentiment is neutral to slightly positive.

Positives

• The acquisition of RSUs due to dividend payments is a standard practice for non-employee directors at Encompass Health Corp, indicating a consistent compensation policy.

Industry Context

This type of transaction is common for directors of publicly traded companies, as it aligns their interests with those of shareholders through equity-based compensation tied to dividend payouts.

Comparison to Industry Standards

• Equity compensation for board members is a common practice across publicly traded companies.
• Companies like HCA Healthcare and Tenet Healthcare also utilize stock and option grants as part of their director compensation packages.
• The specific amount and type of equity compensation vary based on company size, performance, and industry standards.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with dividend payouts.

Key Dates