Form 4: Lumen Technologies Executive Kathleen Johnson Reports Stock Grant and Tax Withholding

Kathleen Johnson, President & CEO of Lumen Technologies, reports the acquisition of restricted stock and the disposal of shares to cover taxes.

Summary

• Kathleen Johnson, President & CEO of Lumen Technologies, filed a Form 4 detailing changes in beneficial ownership.
• On March 1, 2025, Johnson acquired 3,331,063 shares of common stock as a grant of restricted stock.
• 40% of the grant is time-based and will vest in three equal annual installments starting March 1, 2026.
• 60% of the grant is performance-based, vesting on March 1, 2028, depending on the achievement of two three-year performance metrics.
• Also on March 1, 2025, 739,237 shares were disposed of at $4.72 per share to cover taxes due upon the vesting of equity awards.
• Following these transactions, Johnson directly owns 9,481,077 shares of Lumen Technologies common stock.
• Johnson also indirectly owns 2,278,362 shares through a spousal trust.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices. The stock grant is a positive sign of aligning management with shareholder interests. The tax withholding is a neutral event.

Positives

• The grant of restricted stock to the President & CEO aligns her interests with those of the shareholders.
• The vesting schedule of the restricted stock incentivizes long-term performance and retention.

Future Outlook

The vesting of the performance-based portion of the restricted stock is dependent on the achievement of two three-year performance metrics, indicating a focus on long-term performance.

Industry Context

Executive compensation packages often include stock grants to align management's interests with those of shareholders. The vesting schedule is a common mechanism to incentivize long-term performance and retention.

Comparison to Industry Standards

• Stock grants are a common component of executive compensation packages in the technology and telecommunications industries.
• Vesting schedules, both time-based and performance-based, are widely used to incentivize long-term performance.
• Companies like Verizon, AT&T, and Comcast also utilize similar compensation strategies for their executives.

Stakeholder Impact

• Shareholders: The stock grant aligns the President & CEO's interests with those of the shareholders.
• Employees: The performance-based vesting may incentivize broader company performance.

Key Dates