Form 4: Evolent Health COO Emily Rafferty Reports Stock Transactions

Emily Ann Rafferty, Chief Operating Officer of Evolent Health, Inc., reports acquisition of restricted stock units and disposition of shares to cover tax obligations.

Summary

• On March 1, 2024, Emily Ann Rafferty, the Chief Operating Officer of Evolent Health, Inc. (EVH), acquired 10,911 shares of Class A Common Stock.
• These shares were granted as restricted stock units under the company's 2015 Omnibus Incentive Compensation Plan.
• The restricted stock units vest in three tranches: 34% on March 1, 2025, 33% on March 1, 2026, and 33% on March 1, 2027.
• On the same day, Ms. Rafferty disposed of 7,049 shares of Class A Common Stock at a price of $34.41 per share.
• This disposition was to satisfy tax withholding obligations related to the vesting of restricted stock units.
• Following these transactions, Ms. Rafferty beneficially owns 79,318 shares of Class A Common Stock, including restricted stock units granted under previous awards.

Sentiment

Score: 6

Explanation: The document reflects standard executive compensation practices and insider trading reporting, indicating a neutral sentiment.

Positives

• The grant of restricted stock units aligns Ms. Rafferty's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment to the company.

Future Outlook

The document does not contain specific forward-looking statements, but the vesting schedule of the restricted stock units suggests an expectation of continued employment and contribution from Ms. Rafferty.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. This filing indicates standard compensation practices and tax obligation fulfillment.

Comparison to Industry Standards

• Stock-based compensation is a common practice among publicly traded companies to incentivize executives.
• Vesting schedules are typically structured to encourage long-term performance and retention.
• The use of shares to cover tax obligations is a standard procedure in equity compensation plans.
• Comparable companies such as UnitedHealth Group (UNH) and Humana (HUM) also utilize stock-based compensation for their executives.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they reflect standard executive compensation practices.
• Employees may view the stock grants as a positive sign of the company's commitment to its leadership.

Key Dates