Form 4: UBSI CEO Exercises Options, Adjusts Holdings
Insider Transaction Report
United Bankshares CEO Richard M. Adams Jr. reported exercising stock options and related share dispositions, adjusting his direct and indirect holdings.
Summary
- Richard M. Adams Jr., Chief Executive Officer and Director of United Bankshares Inc. (UBSI), reported transactions on December 11, 2025.
- Exercised 11,100 stock options for common stock at an exercise price of $35.04 per share.
- Disposed of 10,411 shares of common stock at $39.53 per share, likely for tax withholding purposes related to the option exercise.
- Following these transactions, direct beneficial ownership stands at 162,180.392 shares.
- Indirect beneficial ownership includes 16,247.9878 shares held in a 401k plan and 10,986.084 shares held in a trust for children.
- Holds 254.151 shares of phantom stock, which are payable in cash following termination of employment and arose from deferred compensation under the United Bankshares, Inc., Non-qualified Retirement and Savings Plan.
- Retains several other unexercised stock option grants with various exercise prices and expiration dates, including 14,761 options at $32.51, 7,381 options at $32.51, 16,060 options at $37.6, 11,613 options at $38.49, and 16,060 options at $45.3.
Sentiment
Score: 6
Explanation: The CEO exercised stock options, indicating a realization of value from previously granted equity compensation. The immediate disposition of a significant portion of shares for tax purposes is a common practice and does not inherently signal a change in company fundamentals.
Positives
- The CEO exercised stock options, indicating a realization of value from previously granted equity compensation.
- The exercise price of $35.04 is below the disposition price of $39.53, suggesting a profitable transaction for the insider.
Negatives
- A significant portion of the acquired shares (10,411 out of 11,100) were immediately disposed of, likely to cover taxes, which reduces the net increase in direct ownership from the option exercise.
Industry Context
This Form 4 filing details routine insider transactions for an executive at a financial institution. Such transactions are common for executives receiving equity compensation and do not typically provide broader insights into industry trends or competitive landscape.
Related Party Transactions
- The reported transactions are related-party transactions as they involve an insider (CEO and Director) of United Bankshares Inc. and the company's equity compensation plans.
Stakeholder Impact
- Shareholders: The exercise and sale of shares by a key executive is a routine event for equity compensation and does not significantly alter the company's ownership structure or float.
- Employees: The phantom stock plan highlights a deferred compensation benefit available to executives.
Key Dates
| Date | Description |
|---|---|
| 02/29/2016 | Date exercisable for a stock option grant. |
| 02/27/2017 | Date exercisable for a stock option grant. |
| 02/26/2018 | Date exercisable for a stock option grant. |
| 02/25/2019 | Date exercisable for a stock option grant. |
| 02/24/2020 | Date exercisable for a stock option grant. |
| 02/24/2021 | Date exercisable for a stock option grant. |
| 12/11/2025 | Date of stock option exercise and common stock disposition transactions. |
| 12/12/2025 | Signature date of the reporting person. |
| 02/28/2026 | Expiration date for a stock option grant. |
| 02/27/2027 | Expiration date for a stock option grant. |
| 02/26/2028 | Expiration date for a stock option grant. |
| 02/25/2029 | Expiration date for a stock option grant. |
| 02/24/2030 | Expiration date for two stock option grants. |
Recommendation
holdThis Form 4 details routine insider transactions related to equity compensation. The CEO exercised options and sold shares to cover taxes, which is a common practice and does not inherently signal a change in the company's fundamental outlook or the executive's confidence. It provides no new information that would warrant a change in investment recommendation.
Keywords
United Bankshares, UBSI, Richard M. Adams Jr., CEO, Director, Stock Options, Insider Trading, Form 4, Equity Compensation, Beneficial Ownership, Phantom Stock
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