Form 4: HII Exec Acquires Dividend Equivalent Rights

Chad N. Boudreaux, Ex VP & Chief Legal Officer of Huntington Ingalls Industries, acquires dividend equivalent rights on restricted stock rights.

Summary

• Chad N. Boudreaux, former Executive Vice President & Chief Legal Officer of Huntington Ingalls Industries (HII), reported a transaction on September 12, 2025.
• Boudreaux acquired 18.633 dividend equivalent rights on Restricted Stock Rights (RSRs).
• These RSRs were granted under the 2022 Long-Term Incentive Stock Plan and vest ratably over three years.
• Following the transaction, Boudreaux directly owns 3,810.27 shares of HII common stock.
• The price of the derivative security is $0.

Sentiment

Score: 5

Explanation: Neutral sentiment as it reflects a routine transaction related to executive compensation.

Positives

• Acquisition of dividend equivalent rights indicates continued alignment with company performance.
• The RSRs vest ratably over three years, incentivizing long-term commitment.

Future Outlook

The RSRs vest ratably in three equal installments upon each of the first, second and third anniversaries of the grant date, suggesting a continued focus on long-term incentives.

Industry Context

Executive compensation and stock-based awards are common practices in publicly traded companies to align management interests with shareholder value. This filing reflects standard compensation practices.

Comparison to Industry Standards

• Stock-based compensation is a common practice among publicly traded companies, including peers such as General Dynamics (GD), Lockheed Martin (LMT), and Northrop Grumman (NOC).
• These companies often use restricted stock units (RSUs) or stock options as part of their executive compensation packages.
• Vesting schedules, like the three-year ratable vesting in this case, are also standard to ensure retention and performance alignment.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning executive interests with company performance through stock-based compensation.

Key Dates

Recommendation

The filing represents a standard executive compensation transaction and does not provide sufficient information to warrant a change in investment recommendation. A hold rating is appropriate.

Keywords

Huntington Ingalls Industries, HII, Chad N. Boudreaux, Restricted Stock Rights, Dividend Equivalent Rights, Executive Compensation, SEC Form 4, Insider Trading