Form 4: Huntington Ingalls Industries Executive VP Chad Boudreaux Reports Acquisition of Restricted Stock Rights

Chad N. Boudreaux, Executive VP & Chief Legal Officer of Huntington Ingalls Industries, reports the acquisition of restricted stock rights and dividend equivalent rights.

Summary

• Chad N. Boudreaux, an Executive VP & Chief Legal Officer at Huntington Ingalls Industries, Inc. (HII), filed a Form 4 on September 16, 2024, reporting a transaction on September 13, 2024.
• The transaction involves the acquisition of 5,977 Restricted Stock Rights (RSRs) due to dividend equivalent rights.
• These RSRs were granted under the 2022 Long-Term Incentive Stock Plan on February 26, 2024, and vest ratably in three equal installments on the anniversaries of the grant date.
• Boudreaux also holds 1,208.497 shares of common stock directly.
• Boudreaux has granted Tiffany M. King and Elaine S. Chin power of attorney to execute and file Forms 3, 4, and 5 on his behalf.

Sentiment

Score: 6

Explanation: The document reflects standard executive compensation practices. It's neither overwhelmingly positive nor negative, but rather a routine disclosure.

Positives

• The acquisition of RSRs through dividend equivalent rights suggests a continued investment in the company's long-term performance by the executive.

Future Outlook

The RSRs vest ratably in three equal installments upon each of the first, second and third anniversaries of the grant date, indicating a multi-year incentive structure.

Industry Context

Executive compensation through stock and stock rights is a common practice in publicly traded companies to align management's interests with those of shareholders.

Comparison to Industry Standards

• Stock-based compensation is a standard practice among publicly traded companies, particularly in the defense industry, to incentivize executives and align their interests with shareholder value.
• Companies like Lockheed Martin (LMT) and General Dynamics (GD) also utilize similar long-term incentive plans involving stock options and restricted stock units for their executives.

Stakeholder Impact

• The acquisition of RSRs by an executive could be viewed positively by shareholders as it aligns management's interests with the company's long-term success.

Key Dates