Form 4: LiveWire Group Director John L. Garcia Reports Acquisition of Shares

Director John L. Garcia reports acquisition of LiveWire Group shares through restricted stock units and common stock in lieu of an annual cash retainer.

Summary

• On May 16, 2024, John L. Garcia, a director of LiveWire Group, Inc., acquired 18,969 shares of common stock through a grant of restricted stock units at $0.
• These restricted stock units represent a contingent right to receive one share of LiveWire's common stock and will vest on the earlier of the next annual meeting of stockholders or the anniversary of the grant date, contingent upon continued service.
• On May 17, 2024, Garcia also acquired 14,191 shares of common stock at $6.73 per share in lieu of an annual cash retainer.
• Following these transactions, Garcia beneficially owns 2,609,887 shares of LiveWire Group, Inc. common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. A director increasing their stake in the company is generally viewed favorably, suggesting confidence in the company's prospects. The stock grant in lieu of cash also indicates a commitment to the company's long-term success.

Positives

• Director's acquisition of shares may signal confidence in the company's future.
• Grant of common stock in lieu of cash retainer aligns director's interests with shareholders.

Future Outlook

The restricted stock units will vest on the earlier of the next annual meeting of stockholders or the anniversary of the grant date, subject to the director's continued service through such date.

Industry Context

Directors receiving stock grants and electing to take stock in lieu of cash compensation is a common practice to align management's interests with those of shareholders. This is especially common in growth-oriented companies.

Comparison to Industry Standards

• Stock grants to directors are a common practice across publicly traded companies, particularly in growth sectors like LiveWire's electric vehicle industry.
• Companies like Tesla and Rivian also use stock-based compensation to align director and executive incentives with long-term shareholder value.
• The size of the grant is comparable to grants given to directors of similar-sized companies in the automotive and technology sectors.

Stakeholder Impact

• Shareholders may view the director's increased stake as a positive signal.
• The director's decision to take stock in lieu of cash aligns their interests with those of shareholders.

Key Dates