Form 4: Molina Healthcare Chief Accounting Officer Reports Stock Transactions
SEC Form 4 Filing
Maurice Hebert, Chief Accounting Officer of Molina Healthcare, reports acquisition and disposal of common stock related to performance stock units and restricted stock grants.
Summary
- On March 1, 2025, Maurice Hebert, Chief Accounting Officer of Molina Healthcare, Inc., reported transactions involving the company's common stock.
- Hebert acquired 1,792 shares of common stock at $301.12 per share related to the settlement of performance stock units granted on March 1, 2022.
- These units vested at 149% based on the company's three-year average adjusted earnings per share.
- 656 shares were disposed of to cover withholding taxes related to the vesting of these performance stock units at $301.12 per share.
- An additional 303 shares were disposed of to cover withholding taxes arising from the vesting of 901 shares on March 1, 2025 at $301.12 per share.
- Hebert also acquired 902 shares of restricted stock at $288.12 per share under the company's 2019 Equity Incentive Plan.
- These newly granted shares will vest in one-third increments on March 1, 2026, March 1, 2027, and March 1, 2028.
- Additional shares will vest as follows: 501 shares on March 1, 2026; and 258 shares on March 1, 2027.
- Following these transactions, Hebert beneficially owns 11,208 shares of Molina Healthcare common stock.
Sentiment
Score: 7
Explanation: The document reflects standard executive compensation practices and indicates the company met performance targets, suggesting a neutral to slightly positive sentiment.
Positives
- The vesting of performance stock units at 149% suggests the company exceeded its performance targets for the relevant period.
- The grant of restricted stock aligns the officer's interests with those of the shareholders, incentivizing long-term value creation.
Future Outlook
The document outlines the vesting schedule for the newly granted restricted stock, indicating future vesting events on March 1, 2026, March 1, 2027, and March 1, 2028.
Industry Context
This filing is a routine disclosure related to executive compensation and equity ownership, common in the healthcare industry.
Comparison to Industry Standards
- Equity compensation is a standard practice in the healthcare industry to align executive incentives with shareholder value.
- Companies like UnitedHealth Group, Anthem (now Elevance Health), and Cigna also utilize stock options and restricted stock units as part of their executive compensation packages.
- The vesting schedules and performance metrics used by Molina Healthcare are likely benchmarked against those of its peers to attract and retain talent.
Stakeholder Impact
- Shareholders: The vesting of performance stock units at 149% suggests positive performance, potentially benefiting shareholders.
- Employees: Equity grants can boost employee morale and align their interests with the company's success.
Next Steps
- Continued monitoring of executive stock transactions.
- Future vesting of restricted stock on March 1, 2026, March 1, 2027, and March 1, 2028.
Key Dates
| Date | Description |
|---|---|
| 2019-01-30 | Date of Limited Power of Attorney for Section 16(a) Filings |
| 2022-03-01 | Date of grant for performance stock units that vested on March 1, 2025 |
| 2025-02-28 | Closing price of Issuer's common stock used for valuation of vested shares. |
| 2025-03-01 | Date of stock transactions: acquisition of shares from performance stock units, disposal for tax withholding, and grant of restricted stock. |
| 2025-03-01 | Vesting date of 901 shares. |
| 2025-03-04 | Date of Form 4 filing. |
| 2026-03-01 | First vesting date for one-third of the 902 newly granted restricted shares and 501 additional shares. |
| 2027-03-01 | Second vesting date for one-third of the 902 newly granted restricted shares and 258 additional shares. |
| 2028-03-01 | Final vesting date for one-third of the 902 newly granted restricted shares. |
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