Form 4: Lionsgate Studios Vice Chair Michael Burns Reports Share Transactions Related to RSU Vesting

Lionsgate Studios Corp. Vice Chair Michael Burns reported the acquisition of 51,687 common shares and the disposition of 61,243 common shares for tax withholding purposes, all related to RSU vesting on July 3, 2025.

Summary

• Michael Burns, Vice Chair of Lionsgate Studios Corp., reported transactions involving common shares on July 3, 2025.
• Acquired 51,687 common shares at a price of $0 upon the vesting of 75% of performance restricted share units (RSUs) granted pursuant to an employment agreement.
• Disposed of 34,996 common shares at $5.80 to satisfy tax withholding obligations upon the vesting of 68,916 RSUs.
• Disposed of 26,247 common shares at $5.85 to satisfy tax withholding obligations upon the vesting of 51,687 performance RSUs (75% of eligible units).
• Following these transactions, Michael Burns beneficially owns 3,071,230 common shares.
• Beneficial ownership also includes 68,916 RSUs scheduled to vest on July 3, 2026; 210,958 RSUs scheduled to vest in two equal annual installments on July 1, 2026 and 2027; and 36,575 RSUs scheduled to vest in three equal annual installments on July 1, 2026, 2027 and 2028.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. While there are share dispositions, they are for tax purposes related to RSU vesting, which signifies the achievement of performance targets and the ongoing alignment of executive incentives with company performance. The acquisition of shares through vesting is a positive sign of executive compensation being realized.

Positives

• Michael Burns acquired 51,687 common shares through the vesting of performance RSUs, indicating the achievement of performance targets.
• The vesting of RSUs demonstrates the company's commitment to its performance incentive plan and aligns executive interests with shareholder value.

Negatives

• A total of 61,243 common shares (34,996 + 26,247) were disposed of to cover tax withholding obligations, which represents a reduction in direct share ownership.

Future Outlook

The document indicates future vesting schedules for additional Restricted Share Units (RSUs) for Michael Burns, with vesting dates extending to July 2028, aligning executive incentives with long-term company performance.

Industry Context

This Form 4 filing reflects routine executive compensation practices within the entertainment and media industry, where Restricted Share Units (RSUs) are a common component of long-term incentive plans designed to align executive interests with shareholder value and retain key talent. The disposition of shares for tax withholding is a standard procedure upon RSU vesting.

Corporate Governance

Related Party Transactions

• The reported transactions are related party transactions as they involve the company's Vice Chair, Michael Burns, acquiring shares from and disposing shares to the Issuer (Lionsgate Studios Corp.) as part of his compensation and tax obligations.

Stakeholder Impact

• Shareholders: The vesting of performance-based RSUs for a key executive like the Vice Chair can be viewed positively as it indicates the achievement of company goals and aligns executive interests with shareholder value. The disposition for tax purposes is a routine event.
• Employees: The existence of a performance incentive plan and RSU grants demonstrates a structured approach to executive compensation, which can indirectly influence broader employee compensation strategies and morale.

Next Steps

• Continued vesting of 68,916 RSUs on July 3, 2026.
• Continued vesting of 210,958 RSUs in two equal annual installments on July 1, 2026 and 2027.
• Continued vesting of 36,575 RSUs in three equal annual installments on July 1, 2026, 2027 and 2028.

Key Dates

Recommendation

Keywords

Lionsgate Studios Corp., LION, SEC Form 4, Insider Trading, Restricted Share Units, RSU Vesting, Executive Compensation, Share Disposition, Share Acquisition, Michael Burns, Corporate Governance, Performance Incentive Plan