Form 4: Lionsgate Studios CEO Jon Feltheimer Reports RSU Vesting and Share Transactions

Lionsgate Studios CEO Jon Feltheimer reported the vesting of restricted stock units and related share transactions, including acquisitions and tax withholdings, impacting his beneficial ownership.

Summary

• Jon Feltheimer, Chief Executive Officer and Director of Lionsgate Studios Corp. (LION), reported share transactions on July 27, 2025.
• 50,050 common shares were withheld by Lionsgate Studios Corp. at a price of $6.54 per share to satisfy tax withholding obligations upon the vesting of 95,388 restricted share units (RSUs).
• 71,541 common shares were acquired at a price of $0 upon the vesting of 75% of performance RSUs granted pursuant to an employment agreement.
• An additional 37,538 common shares were withheld by Lionsgate Studios Corp. at a price of $6.54 per share to cover tax obligations related to the vesting of 71,541 performance RSUs.
• Following these reported transactions, Jon Feltheimer's direct beneficial ownership of common shares stands at 3,666,012.
• Beneficial ownership also includes future RSU vestings: 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: 7

Explanation: The filing reflects routine executive compensation events, specifically the vesting of restricted stock units, including performance-based awards. This indicates the achievement of performance targets and ongoing executive retention, which are generally positive signals. The share withholdings for tax are standard and expected.

Positives

• Jon Feltheimer acquired 71,541 common shares through the vesting of performance-based restricted stock units, indicating the achievement of performance targets.
• The vesting of RSUs, including future scheduled vestings totaling 1,289,997 RSUs, demonstrates ongoing compensation and retention of a key executive, aligning his interests with long-term company performance.

Negatives

• A total of 87,588 common shares (50,050 and 37,538) were withheld by Lionsgate Studios Corp. to cover tax obligations related to RSU vesting, reducing the net shares received by the CEO.

Future Outlook

The filing indicates future vesting schedules for a significant number of restricted stock units for Jon Feltheimer, with installments scheduled through July 2028, suggesting continued long-term incentive alignment and executive retention.

Industry Context

This filing represents a routine executive compensation event within the entertainment and media industry, where restricted stock units are a common component of long-term incentive plans designed to align executive interests with shareholder value over multi-year periods. The vesting of performance-based RSUs suggests the company met specific targets, which is a positive signal for the sector.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a significant component of executive compensation, with multi-year vesting schedules and performance-based criteria, is standard practice across the entertainment and media industry, comparable to compensation structures at companies like Netflix, Disney, or Warner Bros. Discovery.
• The withholding of shares for tax obligations upon vesting is also a standard and expected procedure for equity compensation across all industries.

Stakeholder Impact

• Shareholders: The vesting of performance-based RSUs suggests the company met certain performance targets, which could be viewed positively. The increase in the CEO's direct beneficial ownership aligns his interests with shareholders.
• Employees: The filing highlights the company's use of equity compensation plans, which can be a positive for employee retention and motivation if similar plans are available more broadly.

Next Steps

• Future vesting of 196,903 RSUs on July 3, 2026.
• Future vesting of 351,597 RSUs in two equal annual installments on July 1, 2026 and 2027.
• Future vesting of 731,497 RSUs in three equal annual installments on July 1, 2026, 2027 and 2028.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation transactions, specifically the vesting of restricted stock units and associated tax withholdings. While the vesting of performance-based RSUs indicates the achievement of certain company targets, these are expected events and do not typically provide new material information that would warrant a change in investment recommendation. The transactions reflect standard compensation practices and do not signal a significant shift in company fundamentals or outlook that would prompt a 'buy' or 'sell' decision based solely on this filing. Investors should continue to hold and monitor broader company performance and market conditions.

Keywords

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