Form 4: SCI CEO Exercises Options, Sells Shares Under 10b5-1 Plan

Service Corp International CEO Thomas L. Ryan executed pre-planned transactions, exercising stock options and selling common shares.

Summary

• Thomas L. Ryan, CEO & Chairman of Service Corp International (SCI), engaged in transactions involving company common stock on August 21 and August 22, 2025.
• On August 21, 2025, Ryan exercised options to acquire 18,089 shares of common stock at an exercise price of $42.63 per share.
• Concurrently on August 21, 2025, he sold 18,089 shares of common stock at a weighted average price of $81.8199 per share.
• On August 22, 2025, Ryan exercised options to acquire 17,520 shares of common stock at an exercise price of $42.63 per share.
• Concurrently on August 22, 2025, he sold 17,520 shares of common stock at a weighted average price of $81.9073 per share.
• These transactions were made pursuant to a Rule 10b5-1(c) contract, instruction, or written plan.
• Following these reported transactions, Ryan directly beneficially owns 982,333 shares of common stock.
• He also indirectly beneficially owns 157,899 shares through three children's trusts and 519,105 shares through a deferred compensation plan.
• Remaining employee stock options (right to buy) are 253,391 after the transactions, with an exercise price of $42.63 and an expiration date of February 20, 2027.
• The options exercised vested in three equal installments on February 20, 2020, February 20, 2021, and February 20, 2022.

Sentiment

Score: 6

Explanation: The transactions are routine for an executive monetizing vested equity compensation, executed under a pre-planned 10b5-1 plan. The significant difference between exercise and sale price is positive for the executive and reflects stock appreciation.

Positives

• The executive exercised options at a significantly lower price ($42.63) than the sale price (over $81), indicating substantial value creation from the company's stock appreciation.
• The transactions were conducted under a Rule 10b5-1 plan, suggesting a pre-planned and structured approach to equity compensation rather than opportunistic selling.

Negatives

• The sale of shares by a CEO, even if pre-planned, reduces direct ownership and can sometimes be perceived negatively by some investors.

Stakeholder Impact

• Shareholders: The transactions are routine insider sales under a 10b5-1 plan, which are generally not viewed as a negative signal. They represent an executive monetizing vested compensation and are unlikely to significantly impact shareholder sentiment or the company's operational outlook.

Key Dates

Recommendation

A Form 4 filing primarily reports insider transactions and does not typically provide sufficient information to alter a fundamental investment thesis. These transactions appear to be routine exercises and sales under a pre-planned 10b5-1 program, which is common for executive compensation and not indicative of a change in company fundamentals or outlook.

Keywords

Service Corp International, SCI, Thomas L. Ryan, Insider Transaction, Form 4, Stock Options, Share Sale, CEO, 10b5-1 Plan, Equity Compensation