Form 4: Huntington Ingalls Industries Executive Chad N. Boudreaux Reports Changes in Beneficial Ownership
SEC Form 4 Filing
Executive Vice President and Chief Legal Officer Chad N. Boudreaux reports transactions involving Huntington Ingalls Industries stock, including the acquisition of restricted stock rights.
Summary
- Chad N. Boudreaux, Executive Vice President and Chief Legal Officer of Huntington Ingalls Industries, filed a Form 4 detailing changes in beneficial ownership.
- The report includes the acquisition of 1,196 Restricted Stock Rights (RSRs) on February 26, 2024, granted under the 2022 Long-Term Incentive Stock Plan (LTISP).
- These RSRs vest ratably over three years.
- Boudreaux also acquired 6.52 RSRs on June 14, 2024, representing dividend equivalent rights.
- The report also details Boudreaux's ownership of 19,407.397 shares of common stock directly and 1,215.55 shares indirectly through a 401(k) plan.
- He also owns 3,916.6854 shares of common stock through the Huntington Ingalls Industries, Inc. Savings Excess Plan.
Sentiment
Score: 5
Explanation: This is a routine regulatory filing, so the sentiment is neutral. It reflects standard executive compensation practices.
Positives
- The acquisition of restricted stock rights aligns the executive's interests with the long-term performance of the company.
- Dividend equivalent rights provide additional compensation linked to the company's dividend payouts.
Industry Context
Executive stock ownership is a common practice in publicly traded companies to align management's interests with those of shareholders. Form 4 filings are a routine part of regulatory compliance for corporate insiders.
Comparison to Industry Standards
- Executive compensation packages, including restricted stock and dividend equivalent rights, are standard practice among large publicly traded companies like Huntington Ingalls Industries.
- Companies such as Lockheed Martin (LMT) and General Dynamics (GD) also utilize similar equity-based compensation plans for their executives.
Stakeholder Impact
- The reported transactions have a minor impact on shareholders as they reflect standard executive compensation practices.
- Employees participating in the Savings Excess Plan are indirectly affected by the changes in stock ownership.
Key Dates
| Date | Description |
|---|---|
| 02/26/2024 | Grant date of 1,196 Restricted Stock Rights under the 2022 Long-Term Incentive Stock Plan (LTISP) |
| 06/14/2024 | Acquisition of 6.52 Restricted Stock Rights representing dividend equivalent rights |
| 07/12/2024 | Date of signature for the Form 4 filing |
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