Form 4: Evolent Health CFO John Paul Johnson Reports Stock Transactions

John Paul Johnson, CFO of Evolent Health, reports acquisition and disposal of Class A Common Stock due to vesting of restricted stock units and performance-based share units.

Summary

• On March 1, 2025, John Paul Johnson, CFO of Evolent Health, had shares of Class A Common Stock withheld to satisfy tax obligations upon vesting of restricted stock units at a price of $8.99.
• On March 3, 2025, Johnson acquired 89,113 shares of Class A Common Stock and 59,582 shares of Class A Common Stock at $0 due to vesting of restricted stock units and settlement of performance-based share units (PSUs), respectively.
• Also on March 3, 2025, 26,872 shares of Class A Common Stock were withheld to satisfy tax obligations upon settlement of performance-based share units at a price of $8.77.
• Following these transactions, Johnson beneficially owns 283,784 shares of Class A Common Stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The transactions are routine and reflect standard compensation practices. The vesting of PSUs suggests the company met certain performance goals.

Positives

• The vesting of restricted stock units and settlement of performance-based share units indicate that Johnson is accumulating more shares in the company.
• The vesting of PSUs suggests that the company achieved certain performance metrics.

Negatives

• The disposal of shares to cover tax obligations reduces Johnson's overall holdings, although this is a standard practice.

Future Outlook

Restricted stock units vest at a rate of 34% on March 3, 2026, and 33% on March 3, 2027, and March 3, 2028.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. These filings are closely watched by investors to gauge management's sentiment and confidence in the company's prospects.

Comparison to Industry Standards

• Monitoring insider transactions is a common practice in the healthcare industry, with companies like UnitedHealth Group (UNH) and Anthem (ANTM) also subject to similar reporting requirements.
• The vesting schedules and performance-based awards are typical compensation structures used to align management's interests with those of shareholders, similar to practices observed at companies like McKesson (MCK) and CVS Health (CVS).

Stakeholder Impact

• Shareholders can use this information to understand executive compensation and alignment with company performance.
• Employees may be interested in the vesting schedules and performance-based awards as part of the company's compensation structure.

Key Dates