Form 4: Lithia Motors Inc. Executive David Stork Reports Changes in Beneficial Ownership

David Stork, Chief Administrative Officer of Lithia Motors Inc., reports acquisition and disposal of company stock and restricted stock units.

Summary

• On January 2, 2025, David Stork acquired 419 shares of Lithia Motors Inc. common stock through restricted stock units at a price of $0.
• These restricted stock units vest on January 1st of each of the following years: 2026, 2027, 2028, contingent upon continued employment.
• On January 3, 2025, 397 shares were withheld for payment of taxes on the vesting of restricted stock units at a price of $357.43.
• Following these transactions, Stork directly owns 3,219 shares of Lithia Motors Inc. common stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the document primarily reports routine transactions related to executive compensation. The acquisition of restricted stock units can be seen as a slightly positive sign of confidence.

Positives

• The acquisition of restricted stock units indicates confidence in the company's future performance.

Negatives

• The withholding of shares for tax payments reduces the executive's overall holdings, although this is a standard practice.

Risks

• The vesting of restricted stock units is contingent upon continued employment, creating a potential risk if the executive leaves the company before the vesting dates.

Future Outlook

The document does not contain specific forward-looking statements, but the vesting schedule of the restricted stock units extends to 2028.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies. It provides transparency into the alignment of management's interests with those of shareholders.

Comparison to Industry Standards

• Executive compensation packages including restricted stock units are standard practice among publicly traded companies, including Lithia Motors' competitors such as AutoNation, Group 1 Automotive, and Penske Automotive Group.
• The vesting schedules and terms of these grants are typically benchmarked against industry peers to attract and retain key talent.

Stakeholder Impact

• Shareholders gain insight into executive compensation and alignment of interests.
• Employees may view the vesting of restricted stock units as a positive incentive.

Key Dates