Form 4: Huntington Ingalls Industries Executive Acquires Restricted Stock Rights

Thomas E. Stiehle, an executive at Huntington Ingalls Industries, acquired 11,075 restricted stock rights, along with dividend equivalent rights, on December 13, 2024.

Summary

• Thomas E. Stiehle, an Executive Vice President and CFO at Huntington Ingalls Industries, acquired 11,075 restricted stock rights on December 13, 2024.
• These restricted stock rights were granted under the company's 2022 Long-Term Incentive Stock Plan.
• The rights vest ratably in three equal installments on the first, second, and third anniversaries of the grant date, which was February 26, 2024.
• Additionally, Mr. Stiehle 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 RSRs held, divided by the closing price of a share of company stock on the dividend payment date.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively as it aligns management with shareholder interests. 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.
• Dividend equivalent rights provide additional value to the executive based on company performance.

Industry Context

This filing is a routine disclosure of executive compensation in the form of restricted stock rights, which is a common practice in publicly traded companies to align management interests with shareholder value.

Comparison to Industry Standards

• Granting restricted stock rights is a standard practice for executive compensation in the defense and aerospace industry, similar to companies like Lockheed Martin (LMT) and General Dynamics (GD).
• The vesting schedule of three equal annual installments is also a common approach to incentivize long-term performance, aligning with industry norms.
• Dividend equivalent rights are a typical feature of restricted stock grants, ensuring executives receive the same benefits as shareholders during the vesting period.

Stakeholder Impact

• The acquisition of restricted stock rights by the executive aligns their interests with shareholders, potentially leading to better long-term performance.
• The vesting schedule encourages long-term commitment from the executive, which can benefit the company and its stakeholders.

Key Dates

Keywords

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