Form 4: Lionsgate Studios CEO Jon Feltheimer Reports Routine Equity Transactions Including RSU Vesting and Tax Withholding

Lionsgate Studios Corp. CEO Jon Feltheimer reported the vesting of restricted stock units and corresponding share dispositions for tax obligations, alongside an acquisition of common shares, as detailed in a recent SEC Form 4 filing.

Summary

• Jon Feltheimer, Chief Executive Officer of Lionsgate Studios Corp. (LION), reported multiple equity transactions on July 3, 2025.
• 103,315 common shares were disposed of at $5.80 per share to satisfy tax withholding obligations upon the vesting of 196,903 restricted share units (RSUs).
• 147,677 common shares were acquired at $0 per share upon the vesting of 75% of performance RSUs granted pursuant to an employment agreement.
• An additional 77,486 common shares were disposed of at $5.85 per share to cover tax withholding obligations related to the vesting of these 147,677 performance RSUs.
• Following these transactions, Jon Feltheimer's direct beneficial ownership of common shares is 3,682,059.
• His total beneficial ownership includes various RSU grants: 95,388 RSUs scheduled to vest on July 27, 2025; 196,903 RSUs scheduled to vest on July 3, 2026; 351,597 RSUs scheduled to vest in two equal annual installments on July 1, 2026 and 2027; and 731,497 RSUs scheduled to vest in three equal annual installments on July 1, 2026, 2027 and 2028.

Sentiment

Score: 6

Explanation: The filing details routine executive compensation transactions, including RSU vesting and associated tax withholdings. This is generally expected and reflects ongoing executive retention and performance incentives, which is mildly positive for stability but not indicative of new strategic developments.

Positives

• The vesting of 147,677 performance RSUs indicates the achievement of performance targets, aligning executive incentives with company success.
• The ongoing vesting schedule for a significant number of RSUs (totaling 1,375,385 RSUs) demonstrates a long-term commitment and retention strategy for the CEO.

Negatives

• Dispositions of 103,315 and 77,486 common shares were made to cover tax withholding obligations, which, while routine, represent a reduction in direct shareholding.

Future Outlook

Jon Feltheimer holds significant unvested RSUs, with scheduled vesting dates extending through July 2028, indicating future equity compensation and continued alignment with shareholder interests.

Industry Context

Executive compensation through equity awards like RSUs is a standard practice in the media and entertainment industry, aligning management incentives with long-term company performance and shareholder value.

Comparison to Industry Standards

• This Form 4 details routine executive equity compensation transactions (RSU vesting and tax withholding) which are standard across publicly traded companies, including those in the media sector like Disney, Netflix, or Warner Bros. Discovery.
• The specific amounts and vesting schedules are determined by individual employment agreements and company compensation plans, which vary but generally aim to retain key executives and incentivize performance.

Corporate Governance

Related Party Transactions

• The reported transactions are between Lionsgate Studios Corp. and its Chief Executive Officer, Jon Feltheimer, which are by definition related-party transactions concerning executive compensation.

Stakeholder Impact

• Shareholders: Provides transparency on the CEO's equity ownership and compensation structure, aligning executive interests with shareholder value through RSU vesting.
• Employees: May signal stability in executive leadership and adherence to compensation plans.

Next Steps

• Vesting of 95,388 RSUs on July 27, 2025.
• Vesting of 196,903 RSUs on July 3, 2026.
• First installment vesting of 351,597 RSUs and 731,497 RSUs on July 1, 2026.
• Second installment vesting of 351,597 RSUs and 731,497 RSUs on July 1, 2027.
• Third installment vesting of 731,497 RSUs on July 1, 2028.

Key Dates

Keywords

Lionsgate Studios Corp., LION, SEC Form 4, Jon Feltheimer, CEO, Insider Transaction, Equity Compensation, Restricted Share Units, RSU Vesting, Tax Withholding, Executive Stock Ownership