Form 4: Huntington Ingalls CFO Acquires Additional Restricted Stock Rights Through Dividend Equivalents

Huntington Ingalls Industries' Executive Vice President and CFO, Thomas E. Stiehle, acquired 24.859 Restricted Stock Rights as dividend equivalent rights on June 13, 2025, increasing his total beneficial ownership to 4,310.401 RSRs.

Summary

• Thomas E. Stiehle, Executive Vice President and CFO of Huntington Ingalls Industries, Inc. (HII), acquired additional Restricted Stock Rights (RSRs).
• The transaction occurred on June 13, 2025.
• Mr. Stiehle acquired 24.859 Restricted Stock Rights.
• These RSRs were acquired at a price of $0, as they represent dividend equivalent rights.
• Following this transaction, Mr. Stiehle beneficially owns a total of 4,310.401 Restricted Stock Rights.
• Each RSR represents a contingent right to receive an equivalent number of shares of Company common stock, or cash, at the discretion of the Company's Compensation Committee.
• The RSRs were granted under the 2022 Long-Term Incentive Stock Plan (LTISP) and are set to vest ratably in three equal installments upon each of the first, second, and third anniversaries of the grant date.
• The number of dividend equivalent rights acquired is calculated by dividing the aggregate amount of the dividend paid on the total number of RSRs held by the reporting person by the closing price of a share of Company common stock on the dividend payment date.

Sentiment

Score: 7

Explanation: The filing reports a routine acquisition of dividend equivalent rights by a key executive, which aligns management's interests with shareholders. This is a standard compensation event and does not indicate significant positive or negative news about the company's operations or financial health, hence a slightly positive but largely neutral sentiment.

Positives

• The acquisition of additional Restricted Stock Rights by a key executive, Thomas E. Stiehle, aligns his interests more closely with those of the company's shareholders.
• The transaction involves dividend equivalent rights, indicating the company's continued payment of quarterly cash dividends.

Future Outlook

The Restricted Stock Rights acquired are part of a long-term incentive plan and are scheduled to vest ratably in three equal installments on the first, second, and third anniversaries of the grant date (June 13, 2025). Future dividend equivalent rights will continue to be credited following the payment of the Company's quarterly cash dividends.

Industry Context

This Form 4 filing is a routine disclosure of an insider transaction, specifically related to executive compensation. Such transactions, particularly those involving equity awards and dividend equivalents, are common across publicly traded companies in various industries as a means to align executive incentives with shareholder value.

Related Party Transactions

• The acquisition of Restricted Stock Rights by Thomas E. Stiehle, an executive officer, from Huntington Ingalls Industries, Inc. constitutes a related party transaction, which is a standard component of executive compensation.

Stakeholder Impact

• Shareholders: The increased beneficial ownership of Restricted Stock Rights by a key executive enhances the alignment of management's interests with shareholder value, as the executive's compensation is tied to the company's stock performance and dividend payments.

Next Steps

• Vesting of the Restricted Stock Rights in three equal installments on the first, second, and third anniversaries of the grant date (June 13, 2025).
• Future crediting of dividend equivalent rights following payment of the Company's quarterly cash dividends.

Key Dates

Keywords

Huntington Ingalls Industries, HII, SEC Form 4, Insider Transaction, Restricted Stock Rights, Dividend Equivalent Rights, Executive Compensation, Thomas E. Stiehle, Stock Ownership