Form 4: Disney CFO Hugh Johnston Awarded Stock Options and Restricted Stock Units

Disney's Chief Financial Officer, Hugh Johnston, received stock options and restricted stock units as part of the company's 2011 Stock Incentive Plan.

Summary

• Hugh Johnston, the SEVP & Chief Financial Officer of Walt Disney Co, was granted stock options and restricted stock units on January 15, 2025.
• The stock options, totaling 80,490, have an exercise price of $108.795 and vest in three equal installments from January 15, 2026, to January 15, 2028.
• The restricted stock units, totaling 28,150, also vest in three installments, with 9,384 units vesting on January 15, 2026, and 9,383 units vesting on January 15 of 2027 and 2028.
• The number of restricted stock units that vest may vary based on performance criteria, potentially ranging from zero to 100,022.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which are generally viewed positively as they align management with shareholder interests. There are no negative implications.

Positives

• The stock options and restricted stock units serve as an incentive for the CFO, aligning his interests with the company's performance.
• The vesting schedule encourages long-term commitment from the CFO.
• The performance-based vesting of some restricted stock units could drive better company performance.

Risks

• The value of the stock options and restricted stock units is dependent on the future performance of Disney's stock price.
• The performance-based vesting of the restricted stock units introduces uncertainty regarding the final number of units that will vest.

Future Outlook

The vesting of the stock options and restricted stock units is contingent on the CFO's continued employment and, in some cases, the company's performance.

Industry Context

Stock options and restricted stock units are common forms of executive compensation in publicly traded companies, aligning management's interests with those of shareholders.

Comparison to Industry Standards

• Granting stock options and restricted stock units to executives is a standard practice among large public companies like Disney.
• Companies such as Netflix, Apple, and Amazon also use similar incentive plans to attract and retain top talent.
• The vesting schedules and performance criteria are typical for executive compensation packages, designed to encourage long-term value creation.

Stakeholder Impact

• Shareholders may view the stock options and restricted stock units as a positive incentive for the CFO to drive company performance.
• Employees may see this as a standard practice for executive compensation.

Key Dates

Keywords

stock options, restricted stock units, executive compensation, incentive plan, vesting, Walt Disney Co, Hugh Johnston, CFO