Form 4: Leidos Holdings Executive Exercises Stock Options, Adjusts Holdings

Gerard A. Fasano, Chief Growth Officer of Leidos Holdings, exercised stock options and had shares withheld to cover costs, resulting in an adjustment to his beneficial ownership.

Summary

• On May 2, 2024, Gerard A. Fasano, Chief Growth Officer of Leidos Holdings, Inc., executed multiple transactions involving Leidos common stock.
• Fasano exercised stock options to acquire a total of 22,540 shares of common stock at prices ranging from $89.08 to $107.57.
• The transactions included the exercise of options granted on March 6, 2021, March 5, 2022, March 4, 2023 and March 3, 2024.
• Leidos withheld 19,021 shares to cover the exercise price and associated fees, valued at $142.19 per share.
• Following these transactions, Fasano directly owns 91,481.4459 shares of Leidos common stock.
• Fasano also owns derivative securities in the form of stock options.

Sentiment

Score: 6

Explanation: The document reflects routine executive compensation activity. It's neutral to slightly positive as it indicates executive confidence, but doesn't contain information that would drastically alter investor sentiment.

Positives

• The exercise of stock options by a company executive can be seen as a positive sign, indicating confidence in the company's future performance.

Industry Context

Executive stock option exercises are a common practice in publicly traded companies like Leidos Holdings, used to incentivize and reward key personnel. The filing of Form 4 is a standard regulatory requirement to disclose changes in beneficial ownership by company insiders.

Comparison to Industry Standards

• Stock option plans are a standard component of executive compensation packages in the defense and technology industries, where Leidos operates.
• Companies like Lockheed Martin, General Dynamics, and Northrop Grumman also utilize stock options to align executive interests with shareholder value.
• The specific terms of the option grants, such as exercise price and vesting schedule, are typically benchmarked against industry peers to ensure competitiveness.

Stakeholder Impact

• The exercise of stock options has a minor dilutive effect on existing shareholders.
• The transactions reflect the compensation structure for Leidos executives.

Key Dates