Form 4: Loar Holdings Executive Co-Chairman Awarded Employee Stock Options
SEC Form 4 Filing
Brett N. Milgrim, Executive Co-Chairman of Loar Holdings Inc., was granted employee stock options to purchase a total of 710,000 shares of common stock on April 24, 2024.
Summary
- On April 24, 2024, Brett N. Milgrim, the Executive Co-Chairman of Loar Holdings Inc., was granted employee stock options.
- These options allow him to purchase a total of 710,000 shares of Loar Holdings Inc. common stock.
- The options are divided into five tranches with varying exercise prices: $28, $30.8, $33.88, $37.27, and $40.99 per share.
- Each tranche consists of options to purchase 142,000 shares.
- The options expire on April 24, 2034, or 90 days after termination of employment (excluding termination due to death, disability, or cause).
Sentiment
Score: 7
Explanation: The sentiment is neutral to slightly positive as it reflects a standard executive compensation practice. The granting of options can be seen as a positive sign of aligning management interests with shareholders.
Positives
- The granting of stock options aligns the executive's interests with those of the shareholders.
- The staggered exercise prices may incentivize long-term performance.
Future Outlook
The document does not contain any specific forward-looking statements or guidance.
Industry Context
Stock option grants are a common form of executive compensation in publicly traded companies, aligning management's interests with shareholder value creation.
Comparison to Industry Standards
- Executive compensation packages, including stock options, are typically benchmarked against peer companies within the aerospace and defense industry.
- Companies like TransDigm Group, HEICO Corporation, and Curtiss-Wright Corporation also utilize stock options as part of their executive compensation plans.
- The size and vesting schedule of these options are often compared to industry averages to ensure competitiveness and alignment with performance goals.
Stakeholder Impact
- Shareholders may view the stock option grant as a way to incentivize management to improve company performance.
- Employees may see this as a positive sign of investment in the company's leadership.
Key Dates
| Date | Description |
|---|---|
| 04/24/2024 | Date of the stock option grant |
| 04/26/2024 | Date of the Form 4 filing |
| 04/29/2025 | Expiration date of the first tranche of options |
| 04/29/2026 | Expiration date of the second tranche of options |
| 04/29/2027 | Expiration date of the third tranche of options |
| 04/29/2028 | Expiration date of the fourth tranche of options |
| 04/29/2029 | Expiration date of the fifth tranche of options |
| 04/24/2034 | Final expiration date of all options if employment continues |
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