Form 4: Molina Healthcare Executive Debra Bacon Reports Stock Transactions
SEC Form 4 Filing
EVP Debra Bacon reports acquisition and disposal of Molina Healthcare stock related to performance stock units and restricted stock grants.
Summary
- Debra Bacon, EVP of Medicaid at Molina Healthcare, filed a Form 4 detailing changes in her beneficial ownership of the company's stock.
- On March 1, 2025, Bacon acquired 6,605 shares of common stock at $301.12 per share, issued in settlement of performance stock units granted on March 1, 2022.
- She also disposed of 2,270 shares and 431 shares at $301.12 per share to cover withholding taxes related to the vesting of performance stock units and other shares.
- Additionally, Bacon acquired 3,054 shares of restricted stock at $288.12 per share under the company's 2019 Equity Incentive Plan.
- Following these transactions, Bacon beneficially owns 13,026 shares of Molina Healthcare common stock.
Sentiment
Score: 7
Explanation: The document indicates positive performance with the vesting of performance stock units above target. The stock grants also suggest confidence in the company's future.
Positives
- The vesting of performance stock units at 149% suggests strong company performance relative to targets.
- The grant of restricted stock aligns the executive's interests with long-term shareholder value.
Negatives
- The disposal of shares to cover withholding taxes reduces the executive's overall stake in the company.
Future Outlook
The executive's holdings will continue to vest over the next few years, aligning her interests with the company's long-term performance.
Industry Context
Executive stock transactions are common and provide insights into management's view of the company's prospects. Vesting of performance stock units at a high level suggests confidence in the company's financial performance.
Comparison to Industry Standards
- Executive compensation packages in the healthcare industry often include performance-based equity grants to incentivize executives to achieve specific financial and operational goals.
- The vesting schedule for the restricted stock is typical, with vesting occurring over a three-year period to encourage long-term commitment.
- Comparing the vesting percentage of the performance stock units (149%) to those of peer companies would provide a benchmark for assessing Molina Healthcare's performance.
Stakeholder Impact
- Shareholders may view the vesting of performance stock units positively, as it reflects strong company performance.
- Employees may be motivated by the company's achievement of performance targets.
- The transactions have no direct impact on customers, suppliers, or creditors.
Key Dates
| Date | Description |
|---|---|
| 2022-03-01 | Date of grant for performance stock units. |
| 2024-01-26 | Date of execution for Power of Attorney. |
| 2025-03-01 | Date of stock transactions (acquisition and disposal). |
| 2025-02-28 | Closing price of the Issuer's common stock. |
| 2025-07-01 | Vesting date for 530 shares. |
| 2026-03-01 | Vesting date for 1,003 shares. |
| 2026-07-01 | Vesting date for 529 shares. |
| 2027-03-01 | Vesting date for 757 shares. |
| 2027-03-01 | Vesting date for one-third of the newly granted shares. |
| 2028-03-01 | Vesting date for one-third of the newly granted shares. |
| 2026-03-01 | Vesting date for one-third of the newly granted shares. |
| 2025-03-04 | Date of Form 4 filing. |
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