Form 4: Morgan Stanley Director Megan Butler Increases Equity Holdings Through RSU Grant and Tax Withholding

Morgan Stanley Director Megan Butler reported an increase in her beneficial ownership of company common stock through a restricted stock unit grant, partially offset by shares withheld for tax obligations.

Summary

• Morgan Stanley (MS) Director Megan Butler reported changes in her beneficial ownership of common stock on June 1, 2025.
• She was granted 2,155.455 Restricted Stock Units (RSUs) under the Morgan Stanley Directors' Equity Capital Accumulation Plan, convertible into common stock at a 1:1 ratio.
• Concurrently, 286 shares of common stock were disposed of at a price of $127.5833 per share to satisfy tax obligations arising from the conversion of stock units.
• Following these transactions, Megan Butler's direct beneficial ownership of Morgan Stanley common stock stands at 4,624.42 shares.
• The net effect of these transactions is an increase in her beneficial ownership by 1,869.455 units/shares (2,155.455 RSUs granted minus 286 shares withheld for taxes).

Sentiment

Score: 5

Explanation: The document reports routine insider transactions related to director compensation, which is a neutral event in terms of company performance or strategic shifts. It reflects standard corporate governance practices.

Positives

• The grant of Restricted Stock Units (RSUs) to Director Megan Butler aligns her interests with those of shareholders, as her compensation is tied to the company's stock performance.
• The increase in her overall beneficial ownership demonstrates continued commitment to the company.

Negatives

• A portion of the stock units (286 shares) was withheld to cover tax liabilities, which is a standard practice but results in a reduction of immediately available shares for the director.

Future Outlook

The document does not contain any explicit forward-looking statements or guidance beyond the reported transactions.

Industry Context

This Form 4 filing details a routine insider transaction related to director compensation, which is a common practice across the financial services industry to align executive and director incentives with shareholder value.

Corporate Governance

Related Party Transactions

• The grant of Restricted Stock Units (RSUs) to Director Megan Butler by Morgan Stanley constitutes a related party transaction, as it involves compensation from the company to a member of its board of directors.

Stakeholder Impact

• Shareholders: The RSU grant represents a minor dilution of existing shares but is a common method to incentivize directors and align their interests with shareholder value.
• Director (Megan Butler): Receives equity compensation, increasing her personal stake in the company and aligning her financial interests with the company's performance.

Key Dates

Keywords

Morgan Stanley, MS, Form 4, Insider Trading, Director Compensation, Restricted Stock Units, RSU, Equity Ownership, Beneficial Ownership, Tax Withholding