Form 4: Leidos CEO Thomas Bell Reports Stock Option Grant and Tax Obligation Fulfillment

Leidos Holdings CEO Thomas Bell reports the acquisition of stock options and the withholding of shares to cover tax obligations.

Summary

• On March 8, 2025, Leidos Holdings, Inc. CEO Thomas Arthur Bell reported a transaction involving common stock.
• 2,375 shares were withheld by the company to satisfy Mr. Bell's tax obligations related to previously reported restricted stock units at a price of $139.24 per share.
• Following the transaction, Mr. Bell directly owns 35,510 shares of Leidos Holdings, Inc.
• Mr. Bell also acquired 55,621 stock options on March 7, 2025, exercisable beginning March 7, 2026, at a price of $133.06.
• These options vest in three annual installments starting March 7, 2026, and expire on March 6, 2032.
• After the reported transaction, Mr. Bell directly owns 55,621 derivative securities.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The stock option grant suggests confidence in the company's future performance, while the tax withholding is a routine event.

Positives

• The grant of stock options to the CEO aligns his interests with those of the shareholders.
• The vesting schedule of the options encourages long-term performance.

Industry Context

Form 4 filings are standard practice and provide transparency into the transactions of company insiders, which is crucial for maintaining investor confidence.

Comparison to Industry Standards

• Stock option grants are a common form of executive compensation in the technology and defense industries, used by companies like Lockheed Martin, Northrop Grumman, and General Dynamics.
• The vesting schedule of three years is also typical, aligning with industry norms for incentivizing long-term performance.
• Tax withholding through share deductions is a standard method for handling tax obligations related to equity compensation.

Stakeholder Impact

• The stock option grant aligns management's interests with shareholders, potentially driving long-term value creation.
• The tax withholding has no direct impact on stakeholders.

Key Dates