Form 4: Molina Healthcare Executive Debra Bacon Reports Stock Grant and Tax Withholding
SEC Form 4 Filing
Debra Bacon, EVP at Molina Healthcare, reports the acquisition of restricted stock and disposition of shares for tax withholding related to vesting.
Summary
- On March 1, 2024, Debra Bacon, EVP of Medicaid at Molina Healthcare, acquired 2,273 shares of common stock at a price of $387.21 per share as part of a restricted stock grant.
- On the same day, she disposed of 170 shares of common stock at $387.21 per share to cover withholding taxes related to the vesting of 491 shares.
- Following these transactions, Bacon directly owns 6,676 shares of Molina Healthcare common stock.
- The newly granted shares will vest in one-third increments on March 1, 2025, March 1, 2026, and March 1, 2027.
- Additional shares will vest on various dates in 2024, 2025, and 2026, with the remainder of the shares already vested.
Sentiment
Score: 7
Explanation: The document reflects standard executive compensation practices, which are generally viewed neutrally to positively as they align executive interests with shareholder value. The sentiment is slightly positive due to the long-term vesting schedule.
Positives
- The grant of restricted stock to a key executive aligns her interests with those of the shareholders.
- The vesting schedule encourages long-term commitment from the executive.
Future Outlook
The document does not contain specific forward-looking statements, but the vesting schedule of the restricted stock indicates a multi-year commitment from the executive.
Industry Context
Stock grants are a common form of executive compensation in the healthcare industry, aligning management's interests with those of shareholders.
Comparison to Industry Standards
- Comparing Molina Healthcare's executive compensation practices to peers like UnitedHealth Group, Anthem (now Elevance Health), and Humana would provide a broader context.
- These companies also utilize stock grants and options as part of their executive compensation packages.
- The vesting schedules and grant sizes are typically benchmarked against industry standards to attract and retain top talent.
Stakeholder Impact
- Shareholders may view the stock grant positively as it incentivizes the executive to improve company performance.
- Employees may see the grant as a sign of the company's commitment to its leadership.
Key Dates
| Date | Description |
|---|---|
| 2024-01-26 | Date of Power of Attorney execution. |
| 2024-03-01 | Date of stock grant and tax withholding transaction. |
| 2024-03-05 | Date of Form 4 filing. |
| 2024-07-01 | Vesting date for 531 shares. |
| 2025-01-01 | Vesting date for 1,231 shares. |
| 2025-03-01 | Vesting date for 491 shares and one-third of the 2,273 newly granted shares. |
| 2025-07-01 | Vesting date for 530 shares. |
| 2026-03-01 | Vesting date for 245 shares and one-third of the 2,273 newly granted shares. |
| 2026-07-01 | Vesting date for 529 shares. |
| 2027-03-01 | Vesting date for one-third of the 2,273 newly granted shares. |
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