Form 4: Huntington Ingalls Industries Director Acquires Additional Shares Through Dividend Equivalents

Frank R. Jimenez, a director at Huntington Ingalls Industries, acquired additional shares of common stock through dividend equivalents under the company's long-term incentive plan.

Summary

• On September 13, 2024, Frank R. Jimenez, a director of Huntington Ingalls Industries, Inc. (HII), acquired 10.082 shares of common stock.
• The acquisition was a result of dividend equivalents credited on director stock units (DSUs) held by Jimenez under the company's 2012 and 2022 Long-Term Incentive Stock Plans (LTISPs).
• These dividend equivalents are calculated based on the quarterly cash dividend paid on the total number of DSUs held, divided by the closing price of HII common stock on the dividend payment date.
• Following the transaction, Jimenez beneficially owns 2,038.474 shares of HII common stock.
• Jimenez has also granted Tiffany M. King and Elaine S. Chin power of attorney to execute and file Forms 3, 4, and 5 on his behalf in accordance with Section 16(a) of the Securities Exchange Act of 1934.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and well-managed company. The sentiment is neutral to positive as it shows director alignment with shareholder interests.

Positives

• The acquisition of shares through dividend equivalents demonstrates the director's continued investment in the company.
• The use of LTISPs aligns director compensation with shareholder value.

Future Outlook

The director stock units (DSUs) will generally become payable within 30 days following the date a non-employee director ceases to provide services as a member of the board of directors.

Industry Context

This filing is a routine disclosure related to director compensation and stock ownership, common in publicly traded companies. It reflects standard practices for aligning director interests with those of shareholders through equity-based compensation.

Comparison to Industry Standards

• Director compensation through equity and dividend equivalents is a common practice among publicly traded companies, particularly in industries like defense and aerospace.
• Companies such as Lockheed Martin (LMT) and General Dynamics (GD) also utilize similar long-term incentive plans for their directors.
• The specific number of shares acquired and the total holdings are specific to the individual director and the company's compensation policies, making direct comparisons less meaningful without detailed compensation data.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns director interests with shareholder value through equity ownership.

Key Dates