Form 4: Parsons Corp President & CEO Carey A. Smith Reports Changes in Beneficial Ownership
SEC Form 4 Filing
Carey A. Smith, President & CEO of Parsons Corporation, reports multiple transactions involving the disposal of common stock to cover tax obligations, resulting in a decrease in direct holdings.
Summary
- Carey A. Smith, the President & CEO of Parsons Corporation, filed a Form 4 detailing changes in beneficial ownership of the company's common stock.
- The report covers transactions from June 30, 2022, to March 1, 2024.
- Smith disposed of shares on multiple dates to satisfy tax withholding obligations.
- These transactions involved the disposal of shares at prices ranging from $40.42 to $80.82.
- Following these transactions, Smith directly owns 331,764 shares of Parsons Corp common stock.
- Smith also indirectly owns 4,723.9866 shares through an ESOP.
Sentiment
Score: 6
Explanation: Neutral sentiment as the transactions are related to tax obligations, a normal part of executive compensation. However, any selling by executives can create uncertainty.
Negatives
- The reporting person disposed of shares, which could be interpreted negatively by some investors.
Risks
- While the disposals are attributed to tax obligations, frequent selling by executives could raise concerns about their confidence in the company's future performance.
Industry Context
Executive stock transactions are common and closely monitored by investors for insights into management's perspective on the company's valuation and future prospects. Disposals to cover tax obligations are a normal part of executive compensation.
Comparison to Industry Standards
- Executive compensation practices, including stock-based compensation and related tax implications, are standard across publicly traded companies.
- Companies like Jacobs Engineering, AECOM, and Fluor Corporation also utilize stock-based compensation for their executives.
- The frequency and volume of stock disposals for tax purposes are generally comparable across these firms, depending on individual compensation structures and tax liabilities.
Stakeholder Impact
- Shareholders may react to the stock disposals, although they are primarily for tax purposes.
- Employees holding company stock through ESOPs or other compensation plans may be indirectly affected by changes in stock price.
Key Dates
| Date | Description |
|---|---|
| 06/30/2022 | First reported transaction date; disposal of 3,529 shares at $40.42. |
| 02/28/2023 | Disposal of 1,720 shares at $45.03. |
| 03/01/2023 | Disposal of 5,379 shares at $44.88. |
| 03/04/2023 | Disposal of 2,204 shares at $45.41. |
| 06/30/2023 | Disposal of 3,529 shares at $48.14. |
| 02/26/2024 | Disposal of 5,269 shares at $80.54. |
| 02/28/2024 | Disposal of 2,582 shares at $80.17. |
| 03/01/2024 | Disposal of 7,815 shares at $80.82. |
| 03/05/2024 | Date of the report filing. |
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