Form 4: Five Point Holdings Executive Michael Alvarado Reports Changes in Beneficial Ownership
SEC Form 4
Michael Alvarado, Chief Operating Officer, Chief Legal Officer, Vice President, and Secretary of Five Point Holdings, reported transactions involving Class A common shares and restricted share units.
Summary
- On March 9, 2024, Michael Alvarado settled 89,686 restricted share units for Class A common shares.
- The company withheld 45,453 shares to cover tax obligations at a price of $3.02 per share.
- Alvarado also acquired 198,675 and 264,901 restricted share units on March 8, 2024, which vest over time based on service and performance conditions.
- Following these transactions, Alvarado directly owns 505,719 Class A common shares and indirectly owns 55,070 shares through a family trust.
- He also holds 1,522,525 restricted share units.
Sentiment
Score: 5
Explanation: The document is a neutral regulatory filing detailing insider transactions. It doesn't inherently convey positive or negative sentiment.
Future Outlook
The document outlines the vesting schedules for restricted share units, indicating future potential share issuances based on continued service and performance targets.
Industry Context
This filing is a routine disclosure of insider transactions, providing transparency to investors regarding the holdings and trading activity of company executives. It's common for executives to receive and vest restricted share units as part of their compensation.
Comparison to Industry Standards
- Form 4 filings are standard practice for publicly traded companies and their insiders, as mandated by the SEC.
- The vesting schedules and performance-based conditions for restricted share units are typical compensation structures used by companies to align executive incentives with shareholder value.
- Companies like Lennar, D.R. Horton, and NVR also utilize similar equity-based compensation plans for their executives.
Stakeholder Impact
- The filing provides transparency to shareholders regarding executive compensation and ownership.
- The transactions have a minor impact on the overall share structure of the company.
Key Dates
| Date | Description |
|---|---|
| July 9, 2002 | Date of creation of The Michael A. and Julie S. Alvarado Family Trust. |
| March 9, 2023 | Date of grant for an award of 89,686 restricted share units. |
| March 8, 2024 | Date of acquisition of 198,675 and 264,901 restricted share units. |
| March 9, 2024 | Date of settlement of 89,686 restricted share units and tax withholding. |
| March 8, 2025 | First vesting date for 198,675 restricted share units. |
| March 9, 2025 | Next vesting date for the award granted on March 9, 2023. |
| March 8, 2026 | Second vesting date for 198,675 restricted share units. |
| March 9, 2026 | Final vesting date for the award granted on March 9, 2023. |
| March 8, 2027 | Final vesting date for 198,675 restricted share units. |
| February 28, 2027 | End of the performance period for 264,901 restricted share units. |
| March 12, 2024 | Date of signature of the Form 4 filing. |
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