Form 4: Leonardo DRS SVP and Controller Morrow Receives Restricted Stock Units

Pamela Morrow, SVP and Controller at Leonardo DRS, reports the acquisition of 5,705 restricted stock units (RSUs) under the company's 2022 Omnibus Equity Compensation Plan.

Summary

• On April 3, 2025, Pamela Morrow, SVP and Controller of Leonardo DRS, acquired 5,705 restricted stock units (RSUs).
• These RSUs were granted under the Issuer's 2022 Omnibus Equity Compensation Plan.
• Each RSU represents a contingent right to receive one share of Leonardo DRS common stock or the cash equivalent.
• The RSUs are scheduled to vest in three equal installments annually on April 1, 2026, April 1, 2027, and April 1, 2028, contingent upon Morrow's continued employment with the Issuer through each vesting date.
• The number of RSUs that vest on each of April 1, 2026 and April 1, 2027 shall be rounded down to the nearest whole number of RSUs and the remaining RSUs shall vest on April 1, 2028.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The granting of RSUs is a standard practice and indicates confidence in the company's future performance. It also aligns the executive's interests with those of the shareholders.

Positives

• The grant of RSUs aligns Morrow's interests with those of the shareholders, incentivizing her to contribute to the company's long-term success.
• The vesting schedule encourages continued employment with Leonardo DRS.

Risks

• The value of the RSUs is dependent on the future performance of Leonardo DRS's stock price.
• If Morrow leaves the company before the vesting dates, she will forfeit the unvested RSUs.

Future Outlook

The vesting of the RSUs is contingent upon the Reporting Person's continued employment with the Issuer through each vesting date.

Industry Context

Equity compensation is a common practice in the defense industry to attract and retain key personnel. RSUs are often used to align management's interests with those of shareholders.

Comparison to Industry Standards

• Companies like Lockheed Martin, Northrop Grumman, and Raytheon Technologies also utilize equity compensation plans, including RSUs, for their executives.
• The vesting schedules and terms of these plans are generally comparable across the industry, with vesting periods typically ranging from three to five years.

Stakeholder Impact

• Shareholders may view the RSU grant positively as it aligns management's interests with the company's long-term success.
• Employees may see the RSU grant as a positive sign of the company's commitment to its employees.

Key Dates

Keywords

Restricted Stock Units, RSU, Leonardo DRS, Pamela Morrow, Equity Compensation, Form 4, Insider Trading