Form 4: Huntington Ingalls Industries Executive Acquires Restricted Stock Rights

Jennifer R. Boykin, an executive at Huntington Ingalls Industries, acquired 8,491 restricted stock rights and dividend equivalent rights.

Summary

• Jennifer R. Boykin, an Executive Vice President and President of Newport News Shipbuilding at Huntington Ingalls Industries, acquired 8,491 restricted stock rights on December 13, 2024.
• These restricted stock rights were granted under the company's 2022 Long-Term Incentive Stock Plan on February 26, 2024.
• The rights vest ratably in three equal installments on the first, second, and third anniversaries of the grant date.
• Boykin also acquired dividend equivalent rights related to these restricted stock rights.
• The number of dividend equivalent rights is calculated based on the dividend paid on the total number of RSRs held, divided by the closing price of a share of company common stock on the dividend payment date.
• Following the transaction, Boykin directly owns 1,216.988 shares of common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine executive compensation transaction, which is generally positive for aligning management interests with shareholders. There are no negative implications.

Positives

• The acquisition of restricted stock rights aligns executive interests with the long-term performance of the company.
• The vesting schedule encourages long-term commitment from the executive.
• The dividend equivalent rights provide additional compensation tied to the company's dividend payouts.

Future Outlook

The restricted stock rights will vest over the next three years, aligning executive compensation with the company's long-term performance.

Industry Context

This is a standard practice for executive compensation in publicly traded companies, particularly in industries with long-term projects like shipbuilding.

Comparison to Industry Standards

• Many companies in the defense and aerospace sector use restricted stock rights as part of their executive compensation packages.
• Companies like General Dynamics and Lockheed Martin also utilize similar long-term incentive plans to retain and motivate key executives.
• The vesting schedule of three years is a common practice in the industry to ensure long-term commitment.

Stakeholder Impact

• Shareholders may view this as a positive sign of aligning executive interests with long-term company performance.
• Employees may see this as a standard practice for executive compensation.

Next Steps

• The restricted stock rights will vest annually over the next three years.
• The executive will continue to receive dividend equivalent rights as the company pays dividends.

Key Dates

Keywords

Restricted Stock Rights, Executive Compensation, Long-Term Incentive Plan, Dividend Equivalent Rights, Stock Ownership, Huntington Ingalls Industries, HII