Form 4: Federal Signal Corp CEO Exercises Stock Options and Disposes of Shares
SEC Form 4 Filing
Jennifer L. Sherman, President & CEO of Federal Signal Corp, exercised stock options and disposed of shares to cover the exercise price and taxes.
Summary
- On April 7, 2025, Jennifer L. Sherman, President & CEO of Federal Signal Corp, exercised stock options to purchase 12,935 shares of common stock at a price of $16.09 per share.
- She then disposed of 7,371 shares at $70.66 per share to cover the exercise price and associated taxes.
- Following these transactions, Sherman directly owns 565,720.7519 shares of Federal Signal Corp and indirectly owns 59,911.9873 shares through a 401(k) plan.
- The stock options were granted with an exercise price of $16.09 and vested in three equal installments on April 10, 2016, 2017, and 2018, expiring on April 10, 2025.
Sentiment
Score: 5
Explanation: The document is a standard regulatory filing detailing stock option exercises and share disposals, which is neutral in sentiment.
Industry Context
Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. The exercise of stock options and subsequent sale of shares is a common practice for executives.
Comparison to Industry Standards
- Executive compensation packages often include stock options to align management's interests with those of shareholders.
- The vesting schedule and expiration date of these options are typical for such arrangements.
- The sale of shares to cover exercise costs and taxes is a standard practice among executives exercising stock options.
Stakeholder Impact
- The transaction has a minor impact on shareholders as it involves the exercise of existing stock options and a small change in the number of outstanding shares.
Key Dates
| Date | Description |
|---|---|
| 2016-04-10 | First vesting date of the stock options. |
| 2017-04-10 | Second vesting date of the stock options. |
| 2018-04-10 | Third vesting date of the stock options. |
| 2025-04-07 | Date of stock option exercise and share disposal. |
| 2025-04-09 | Date of Form 4 signature. |
| 2025-04-10 | Expiration date of the stock options. |
Keywords
Form 4, Stock Options, Insider Trading, Federal Signal Corp, FSS, Jennifer L. Sherman, Executive Compensation, Beneficial Ownership
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