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 upon vesting of equity awards.

Summary

• Kathleen E. Johnson, President & CEO of Lumen Technologies, filed a Form 4 on March 5, 2024.
• The report details changes in her beneficial ownership of Lumen Technologies common stock.
• On March 1, 2024, Johnson acquired 3,609,194 shares of common stock through a time-based restricted stock grant that will vest in three equal annual installments beginning on March 1, 2025.
• On the same day, 212,815 shares were disposed of to cover taxes due upon the vesting of equity awards at a price of $1.62 per share.
• Following these transactions, Johnson directly owns 7,280,093 shares of Lumen Technologies common stock and indirectly owns 1,188,725 shares through a spousal trust.

Sentiment

Score: 6

Explanation: The document is a routine filing related to executive compensation. The stock grant is a positive sign, but the tax withholding is a neutral event.

Positives

• The grant of restricted stock to the CEO aligns her interests with those of the shareholders, incentivizing her to improve the company's performance.

Future Outlook

The restricted stock grant vests in three equal annual installments beginning on March 1, 2025.

Industry Context

Executive compensation through stock grants is a common practice in the technology industry to incentivize performance and align management's interests with shareholders.

Comparison to Industry Standards

• Stock grants are a typical component of executive compensation packages in the telecommunications industry, similar to companies like Verizon and AT&T.
• The vesting schedule of three years is also a standard practice to ensure long-term commitment from the executive.

Stakeholder Impact

• The stock grant aligns the CEO's interests with shareholders, potentially leading to increased shareholder value.
• The vesting schedule encourages long-term commitment from the CEO.

Key Dates