Form 4: Lionsgate CEO Jon Feltheimer Reports Changes in Beneficial Ownership Following Lionsgate Studios Corp. Transaction

Sentiment:

SEC Form 4


Jon Feltheimer, CEO of Lionsgate Studios Corp., reports changes in his beneficial ownership of securities following the completion of transactions related to the Arrangement Agreement.

Summary

  • Jon Feltheimer, CEO of Lionsgate Studios Corp., filed a Form 4 detailing changes in his beneficial ownership of securities.
  • The changes are related to the consummation of transactions under the Arrangement Agreement dated January 29, 2025, as amended.
  • Equity awards under Lions Gate Entertainment Corp. (LGEC) were converted into awards of Lionsgate Studios Corp. under the New Lionsgate 2025 Plan.
  • Feltheimer's holdings include 3,013,260 common shares, including shares from vested restricted share units (RSUs).
  • He also holds non-qualified stock options and share appreciation rights.
  • The reported transactions occurred on May 9, 2025.

Sentiment

Score: 7

Explanation: The document is a standard regulatory filing detailing changes in beneficial ownership. The sentiment is neutral to slightly positive as it reflects the completion of a corporate transaction and continued executive alignment with company performance.

Positives

  • The filing indicates a restructuring of equity awards following the completion of the Arrangement Agreement, which could streamline operations.
  • Feltheimer's continued holdings in common shares and derivative securities align his interests with the company's performance.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedules of the RSUs and expiration dates of the options and share appreciation rights.

Industry Context

This filing is a routine disclosure related to executive compensation and ownership changes following a corporate transaction, common in publicly traded companies.

Comparison to Industry Standards

  • Executive compensation packages including stock options and RSUs are standard practice among publicly listed media and entertainment companies.
  • Companies like Netflix, Disney, and Paramount Global also utilize similar equity-based compensation to align executive interests with shareholder value.
  • The vesting schedules and exercise prices of the options are typical for executive compensation plans in the industry.

Stakeholder Impact

  • Shareholders are informed about the changes in executive ownership, which can influence investor confidence.
  • Employees who hold equity awards are affected by the conversion of LGEC awards to Lionsgate Studios Corp. awards.

Key Dates

DateDescription
January 29, 2025Date of the Arrangement Agreement.
March 12, 2025Date of the amending agreement to the Arrangement Agreement.
May 6, 2025Consummation of transactions contemplated by the Arrangement Agreement.
May 9, 2025Date of the reported transactions and filing.
May 13, 2025Date of signature on the Form 4 filing.
July 1, 2025First vesting date for 527,396 RSUs.
July 3, 2025First vesting date for 393,805 RSUs.
July 27, 2025Vesting date for 95,388 RSUs.
July 1, 2026Second vesting date for 527,396 RSUs.
July 3, 2026Second vesting date for 393,805 RSUs.
October 11, 2026Expiration date for multiple non-qualified stock options.
July 1, 2027Third vesting date for 527,396 RSUs.
June 7, 2028Expiration date for multiple non-qualified stock options.
August 21, 2030Expiration date for share appreciation rights.

Keywords

beneficial ownership, Form 4, Lionsgate Studios Corp., Jon Feltheimer, equity awards, Arrangement Agreement, common shares, stock options, share appreciation rights, RSUs

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