Form 4: Mayville Engineering Company CFO Todd Butz Reports Stock and Options Activity
SEC Form 4 Filing
Todd Butz, CFO of Mayville Engineering Company, reports acquisition of restricted stock units and details existing stock and option holdings.
Summary
- On March 19, 2024, Todd M. Butz, the Chief Financial Officer of Mayville Engineering Company, filed a Form 4.
- The filing details changes in his beneficial ownership of the company's securities.
- Butz directly owns 124,596 shares of common stock.
- He indirectly owns 39,726 shares through an ESOP and/or 401(k) plan.
- He was granted 52,841 restricted stock units on March 15, 2024, which will vest in three equal installments on March 15 of 2025, 2026, and 2027.
- Butz also holds multiple stock option grants with varying exercise prices and expiration dates, totaling 277,212 options.
- These options vest in installments, typically 50% each year over a two-year period from the grant date.
Sentiment
Score: 6
Explanation: The document is a routine regulatory filing, so the sentiment is neutral. The grants of stock options and restricted stock units are generally viewed positively as they align management's interests with shareholders.
Positives
- The grant of restricted stock units aligns the CFO's interests with those of the shareholders, incentivizing him to improve the company's performance.
- The vesting schedules of the restricted stock units and stock options encourage long-term commitment from the CFO.
Industry Context
Form 4 filings are a routine part of corporate governance, providing transparency into the trading activities of company insiders. Investors monitor these filings to gain insights into management's perspective on the company's stock.
Comparison to Industry Standards
- Stock option and restricted stock unit grants are common compensation practices for executives in publicly traded companies like Mayville Engineering.
- Vesting schedules and exercise prices are typically structured to align executive compensation with long-term shareholder value creation.
- The specific terms of these grants (vesting period, exercise price) are generally comparable to those offered by peer companies to their executives.
Stakeholder Impact
- Shareholders may view the equity grants to the CFO positively, as they incentivize him to improve the company's performance and increase shareholder value.
Key Dates
| Date | Description |
|---|---|
| 05/08/2020 | 50% of stock options (exercise price $17) vest |
| 05/08/2021 | 50% of stock options (exercise price $17) vest |
| 02/27/2021 | 50% of stock options (exercise price $7.12) vest |
| 02/27/2022 | 50% of stock options (exercise price $7.12) vest |
| 02/28/2022 | 50% of stock options (exercise price $14.01) vest |
| 02/28/2023 | 50% of stock options (exercise price $14.01) vest and 50% of stock options (exercise price $10.32) vest |
| 02/28/2024 | 50% of stock options (exercise price $10.32) vest, 50% of stock options (exercise price $16.22) vest and 50% of restricted stock units vest |
| 03/15/2024 | Date of transaction and grant of 52,841 restricted stock units |
| 02/28/2025 | 50% of stock options (exercise price $16.22) vest and 50% of restricted stock units vest |
| 03/15/2025 | 1/3 of restricted stock units vest |
| 03/15/2026 | 1/3 of restricted stock units vest |
| 03/15/2027 | 1/3 of restricted stock units vest |
| 05/08/2029 | Expiration date for stock options with exercise price of $17 |
| 02/27/2030 | Expiration date for stock options with exercise price of $7.12 |
| 02/28/2031 | Expiration date for stock options with exercise price of $14.01 |
| 02/28/2032 | Expiration date for stock options with exercise price of $10.32 |
| 02/28/2033 | Expiration date for stock options with exercise price of $16.22 |
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