Form 4: Frequency Electronics CEO Exercises Stock Appreciation Rights
SEC Form 4 Filing
Thomas McClelland, CEO of Frequency Electronics, exercised stock appreciation rights and disposed of shares to cover tax obligations.
Summary
- On April 23, 2025, Thomas McClelland, the President and CEO of Frequency Electronics, Inc. (FEIM), exercised stock appreciation rights (SARs) relating to 8,000 shares of common stock at an exercise price of $13.24.
- As a result of exercising these SARs, McClelland acquired 8,000 shares and then disposed of 5,875 shares at $18.03 to satisfy tax obligations.
- Following these transactions, McClelland directly owns 99,723 shares of Frequency Electronics common stock.
- Additionally, 28,000 Stock Appreciation Rights previously granted to the reporting person have expired without being exercised.
Sentiment
Score: 5
Explanation: The document is a neutral report of insider trading activity, with no inherent positive or negative implications for the company's performance.
Industry Context
This Form 4 filing is a routine disclosure of insider transactions, providing transparency into the trading activities of company executives. It's common for executives to exercise stock options or appreciation rights and then sell a portion of the acquired shares to cover taxes.
Stakeholder Impact
- The transaction has a minimal impact on shareholders, as it represents a routine exercise of stock appreciation rights by the CEO.
- The disposal of shares to cover taxes may slightly increase the trading volume of the stock.
Key Dates
| Date | Description |
|---|---|
| 04/30/2016 | Date Stock Appreciation Rights were exercisable |
| 04/17/2025 | Date Stock Appreciation Rights were exercisable |
| 04/23/2025 | Date of transaction: Exercise of stock appreciation rights and disposal of shares. |
| 04/30/2025 | Expiration date of Stock Appreciation Rights |
| 04/25/2025 | Date of signature on the Form 4 filing. |
Keywords
Frequency Electronics, FEIM, Thomas McClelland, Stock Appreciation Rights, SAR, Form 4, Insider Trading, Executive Compensation, Beneficial Ownership
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