Form 4: Huntington Ingalls Industries Executive Receives Dividend Equivalent Rights
SEC Form 4 Filing
Edmond E. Hughes Jr., former Executive Vice President & Chief HR Officer of Huntington Ingalls Industries, reports the acquisition of dividend equivalent rights on restricted stock rights.
Summary
- Edmond E. Hughes Jr., a former executive at Huntington Ingalls Industries (HII), filed a Form 4 disclosing a transaction involving dividend equivalent rights.
- The transaction occurred on September 13, 2024, and involved the acquisition of 4.418 dividend equivalent rights on Restricted Stock Rights (RSRs).
- These RSRs were granted under the 2022 Long-Term Incentive Stock Plan (LTISP) on February 26, 2024, and vest ratably over three years.
- Each RSR represents a contingent right to receive one share of HII common stock, or cash, or a combination of both, at the discretion of the Company's Compensation Committee.
- The dividend equivalent rights were credited following the payment of the Company's quarterly cash dividend.
- Hughes directly owns 893.237 shares of HII common stock following the reported transaction.
Sentiment
Score: 5
Explanation: The document is a standard regulatory filing and does not inherently convey positive or negative sentiment. It simply reports a transaction.
Industry Context
This filing is a routine disclosure related to insider transactions and provides insight into executive compensation structures at Huntington Ingalls Industries.
Comparison to Industry Standards
- Executive compensation packages including restricted stock rights and dividend equivalents are common practice among publicly traded companies, including defense contractors like Lockheed Martin (LMT) and General Dynamics (GD).
- The vesting schedule of the RSRs (three years) is also a typical vesting period for such grants.
- The use of a Long-Term Incentive Stock Plan (LTISP) aligns with industry standards for incentivizing long-term performance and retention of key executives.
Stakeholder Impact
- The transaction has a minimal direct impact on shareholders, employees, customers, suppliers, and creditors.
- It provides transparency regarding executive compensation and ownership.
Key Dates
| Date | Description |
|---|---|
| 2024-02-26 | Restricted Stock Rights (RSRs) were granted under the 2022 Long-Term Incentive Stock Plan (LTISP). |
| 2024-08-21 | Power of Attorney executed by Edmond E. Hughes, Jr. |
| 2024-09-13 | Transaction date for the acquisition of dividend equivalent rights. |
| 2024-09-16 | Date of Form 4 filing. |
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