Form 4: RLI Corp CEO Craig Kliethermes Reports Stock Option Exercise and Share Disposals
SEC Form 4
RLI Corp's CEO, Craig W. Kliethermes, reported exercising stock options and disposing of shares to cover tax obligations, resulting in adjustments to his beneficial ownership.
Summary
- On July 30, 2024, Craig W. Kliethermes, CEO of RLI Corp, exercised stock options to acquire 4,000 shares of common stock at a price of $56.14.
- Following the exercise, Kliethermes disposed of 2,506 shares to satisfy tax obligations at a price of $150.33.
- After these transactions, Kliethermes directly owns 62,148 shares of RLI Corp common stock.
- He also indirectly owns 7,659.29 shares through an ESOP and 11,293.269 shares through an Executive Deferred Compensation plan.
- Kliethermes holds various stock options with exercise prices ranging from $75.66 to $143.15, exercisable in increments until 2032.
Sentiment
Score: 5
Explanation: The document is a neutral regulatory filing detailing stock transactions. It doesn't inherently convey positive or negative sentiment.
Industry Context
This filing is a routine disclosure related to executive compensation and stock ownership, common among publicly traded companies. It provides transparency regarding the transactions of company insiders.
Comparison to Industry Standards
- Executive stock option exercises and subsequent share disposals for tax purposes are standard practice across publicly listed companies.
- Companies like Chubb, Travelers, and Progressive also regularly report similar Form 4 filings for their executives.
- The option exercise prices and vesting schedules are generally in line with industry norms for executive compensation packages designed to align management interests with shareholder value.
Stakeholder Impact
- The transactions may have a minor impact on shareholders due to the change in the number of outstanding shares.
- The filing provides transparency to stakeholders regarding executive compensation and ownership.
Key Dates
| Date | Description |
|---|---|
| 05/03/2019 | Date of stock option grant with exercise price of $56.14. |
| 05/02/2020 | Date of stock option grant with exercise price of $75.66. |
| 08/21/2021 | Date of stock option grant with exercise price of $86.24. |
| 05/06/2022 | Date of stock option grant with exercise price of $106.02. |
| 11/10/2022 | Date of $7.00 extraordinary dividend declaration, impacting stock option grant prices. |
| 05/05/2023 | Date of stock option grant with exercise price of $109.6. |
| 05/04/2024 | Date of stock option grant with exercise price of $136.59. |
| 07/30/2024 | Date of stock option exercise and share disposal. |
| 07/31/2024 | Date of signature on the Form 4 filing. |
| 08/01/2024 | Date of stock option grant with exercise price of $134.41. |
| 11/01/2024 | Date of stock option grant with exercise price of $135.22. |
| 02/01/2025 | Date of stock option grant with exercise price of $135.22. |
| 05/02/2025 | Date of stock option grant with exercise price of $143.15. |
| 05/03/2026 | Expiration date for stock options granted on 05/03/2019. |
| 05/02/2027 | Expiration date for stock options granted on 05/02/2020. |
| 08/21/2028 | Expiration date for stock options granted on 08/21/2021. |
| 05/06/2029 | Expiration date for stock options granted on 05/06/2022. |
| 05/05/2030 | Expiration date for stock options granted on 05/05/2023. |
| 05/04/2031 | Expiration date for stock options granted on 05/04/2024. |
| 08/01/2031 | Expiration date for stock options granted on 08/01/2024. |
| 11/01/2031 | Expiration date for stock options granted on 11/01/2024. |
| 02/01/2032 | Expiration date for stock options granted on 02/01/2025. |
| 05/02/2032 | Expiration date for stock options granted on 05/02/2025. |
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