Form 4: Leidos Holdings Director Harry M. Jansen Kraemer Jr. Reports Stock Option Grant and Stock Deferral Plan Activity

Director Harry M. Jansen Kraemer Jr. reports acquisition of stock options and shares through a key executive stock deferral plan.

Summary

• On May 3, 2024, Harry M. Jansen Kraemer Jr., a director of Leidos Holdings, Inc., reported transactions involving the company's common stock.
• Kraemer acquired 912 shares of common stock through a key executive stock deferral plan.
• Kraemer was also granted stock options to purchase 1,179 shares of common stock at an exercise price of $142.66, exercisable starting May 3, 2025, and expiring on May 2, 2031.
• Following these transactions, Kraemer directly owns 87,290 shares and indirectly owns 124,656.0452 shares through the Key Executive Stock Deferral Plan.
• The stock option vests on the earlier of the first anniversary of the grant date or the conclusion of the next annual meeting of stockholders.

Sentiment

Score: 6

Explanation: Neutral sentiment as it reflects standard insider transactions related to compensation. No clear positive or negative implications for the company's performance.

Positives

• The acquisition of shares through the stock deferral plan and the grant of stock options indicate a continued investment and alignment of interests between the director and the company's performance.

Future Outlook

The director's holdings will increase if the stock options are exercised, contingent on the stock price exceeding the exercise price and the vesting conditions being met.

Industry Context

Insider transactions are closely monitored as they can provide insights into management's perspective on the company's future prospects. Option grants are a common form of executive compensation in the industry.

Comparison to Industry Standards

• Stock option grants are a typical component of executive compensation packages in publicly traded companies, particularly in the technology and defense sectors where Leidos operates.
• The vesting schedule of the options (one year or the next annual meeting) is fairly standard.
• Comparing the size of the grant to those of directors at similar companies (e.g., Booz Allen Hamilton, CACI International) would provide further context.

Stakeholder Impact

• The transactions may have a minor positive impact on shareholder sentiment, reflecting alignment of director's interests with company performance.

Key Dates