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

Chad N. Boudreaux, Executive Vice President and Chief Legal Officer of Huntington Ingalls Industries, Inc., acquired 21.868 Restricted Stock Rights as dividend equivalents on June 13, 2025.

Summary

• Chad N. Boudreaux, the Executive Vice President and Chief Legal Officer of Huntington Ingalls Industries, Inc. (HII), reported an acquisition of Restricted Stock Rights (RSRs).
• The transaction occurred on June 13, 2025, and involved the acquisition of 21.868 RSRs.
• These RSRs were acquired at a price of $0, representing dividend equivalent rights credited following the payment of the Company's quarterly cash dividend.
• The number of dividend equivalent rights is calculated by dividing the aggregate dividend amount paid on the total RSRs held by the reporting person by the closing price of Company common stock on the dividend payment date.
• Following this transaction, Mr. Boudreaux beneficially owns a total of 3,791.637 RSRs.
• The RSRs were granted under the 2022 Long-Term Incentive Stock Plan (LTISP) and are set to vest ratably in three equal installments on the first, second, and third anniversaries of the grant date.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. This is a routine insider transaction related to executive compensation, specifically the acquisition of dividend equivalents on existing Restricted Stock Rights. It indicates ongoing participation in the company's incentive plan but does not signal significant new developments or changes in company performance.

Positives

• The acquisition of Restricted Stock Rights (RSRs) as dividend equivalents indicates the executive's continued participation in the company's long-term incentive plan.
• The increase in RSR holdings aligns the executive's interests with those of shareholders, as the value of RSRs is tied to the company's common stock performance.

Future Outlook

The acquired Restricted Stock Rights (RSRs) are part of the 2022 Long-Term Incentive Stock 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).

Industry Context

This Form 4 filing is a routine disclosure of an insider transaction related to executive compensation. It reflects the standard practice of publicly traded companies to grant equity-based incentives, such as Restricted Stock Rights, to align executive interests with shareholder value. The acquisition of dividend equivalents is a common feature of such plans, ensuring that equity holders receive benefits commensurate with cash dividends paid to common stockholders.

Related Party Transactions

• The acquisition of 21.868 Restricted Stock Rights by Chad N. Boudreaux, an executive officer, represents a transaction between the company and a related party as part of the 2022 Long-Term Incentive Stock Plan (LTISP).

Stakeholder Impact

• Shareholders: The transaction is a routine part of executive compensation and aligns executive interests with shareholder value through equity ownership, but has no direct material impact on current share price or dividends.
• Employees: No direct impact on general employees is indicated by this specific filing.
• Management: The executive's equity stake increases, reinforcing their long-term commitment to the company's performance.

Next Steps

• The Restricted Stock Rights (RSRs) acquired on June 13, 2025, will vest in three equal installments on June 13, 2026, June 13, 2027, and June 13, 2028.

Key Dates

Keywords

Huntington Ingalls Industries, HII, SEC Form 4, Insider Transaction, Restricted Stock Rights, RSRs, Dividend Equivalents, Executive Compensation, Long-Term Incentive Plan, Corporate Governance