Form 4: Lumen Technologies Executive Stacey W. Goff Reports Changes in Beneficial Ownership

Stacey W. Goff, EVP & GC of Lumen Technologies, reports the forfeiture of performance-based restricted shares and shares withheld for taxes.

Summary

• On March 1, 2024, Stacey W. Goff, EVP & GC of Lumen Technologies, reported changes in beneficial ownership of Lumen Technologies common stock.
• A total of 1,200,566 shares were directly owned.
• 57,405 shares were withheld to cover taxes due upon the vesting of equity awards at a price of $1.62.
• 100,728 performance-based restricted shares or RSUs granted on February 24, 2021, were forfeited due to failure to achieve three-year performance metrics.
• Following these transactions, the reporting person directly owns 1,099,838 shares of common stock.
• The reporting person also indirectly owns 4,006 shares via 401(k), 5,676 shares via ESOP, and 1,078 shares via Stock Bonus Plan.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the forfeiture of performance-based shares, indicating a failure to meet performance targets. However, the routine nature of tax-related share withholding tempers the negative impact.

Negatives

• 100,728 performance-based restricted shares were forfeited due to failure to meet performance metrics.

Industry Context

Executive stock transactions are routinely monitored as indicators of management's confidence in the company's prospects. Forfeiture of shares due to unmet performance metrics can raise concerns about the company's ability to achieve its goals.

Comparison to Industry Standards

• Executive compensation structures often include performance-based equity awards to align management interests with shareholder value.
• Forfeiture of such awards is not uncommon when companies fail to meet pre-defined performance targets, similar to instances observed at companies like General Electric and Wells Fargo in previous years.
• The specific metrics and vesting schedules vary widely across the industry, making direct comparisons challenging without detailed information on Lumen Technologies' compensation plan.

Stakeholder Impact

• Shareholders may be concerned about the company's ability to meet its performance goals, as indicated by the forfeiture of executive performance-based shares.
• Employees holding similar performance-based awards may also be affected by the company's performance.

Key Dates