Form 4: Leidos Holdings Executive Gerard A. Fasano Reports Stock Option Grant

Chief Growth Officer Gerard A. Fasano of Leidos Holdings, Inc. reports the acquisition of stock options.

Summary

• Gerard A. Fasano, Chief Growth Officer of Leidos Holdings, Inc., filed a Form 4 on March 12, 2024, reporting a transaction.
• The transaction involved the acquisition of stock options (right to buy) at a price of $129.79 on March 8, 2024.
• Fasano acquired 8,410 stock options, exercisable beginning March 8, 2025, and expiring on March 7, 2031.
• The options vest in three annual installments starting March 8, 2025.
• Following the reported transaction, Fasano directly owns 8,410 derivative securities.

Sentiment

Score: 6

Explanation: The sentiment is neutral as it reports a standard executive compensation practice. It's neither particularly positive nor negative from an investment perspective.

Positives

• The grant of stock options to a key executive aligns their interests with those of the shareholders, incentivizing them to improve company performance.

Industry Context

Stock option grants are a common form of executive compensation in the technology and defense industries, used to incentivize performance and retain key talent.

Comparison to Industry Standards

• Stock option grants are a standard component of executive compensation packages in publicly traded companies, particularly in the tech and defense sectors where Leidos operates.
• The vesting schedule of three years is also typical, aligning with industry norms for long-term incentive plans.
• Comparing the size of the grant to similar roles at companies like Booz Allen Hamilton or General Dynamics would provide further context on its relative value.

Stakeholder Impact

• The stock option grant could potentially impact shareholders by diluting equity if the options are exercised.
• It incentivizes the Chief Growth Officer to drive company growth, which could benefit shareholders, employees, and other stakeholders.

Key Dates