Form 4: Disney Executive Horacio Gutierrez Receives Stock Options and Restricted Stock Units

Horacio Gutierrez, Senior EVP and Chief Legal Officer at Walt Disney Co, was granted stock options and restricted stock units on January 15, 2025.

Summary

• Horacio Gutierrez, a Senior EVP and Chief Legal Officer at Walt Disney Co, received stock options for 66,659 shares at an exercise price of $108.795 on January 15, 2025.
• These options vest in three tranches: 22,220 units on January 15, 2026, 22,219 units on January 15, 2027, and 22,220 units on January 15, 2028.
• He also received 23,313 restricted stock units (RSUs) that convert to common stock on a 1-for-1 basis.
• These RSUs vest in three equal installments on January 15 of 2026, 2027, and 2028.
• The stock options were granted under the company's Amended and Restated 2011 Stock Incentive Plan.
• The number of stock units vesting from the stock option award is subject to performance criteria, and could range from zero to 82,832.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively as it aligns management interests with shareholders. There are no negative implications.

Positives

• The stock options and restricted stock units serve as an incentive for the executive.
• The vesting schedule encourages long-term performance and retention.
• The performance-based vesting of the stock options could lead to a higher number of shares being awarded.

Risks

• The value of the stock options and RSUs is dependent on the future performance of Disney's stock price.
• The performance-based vesting of the stock options could result in fewer shares being awarded if performance targets are not met.

Future Outlook

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

Industry Context

The granting of stock options and restricted stock units is a common practice in corporate America to incentivize and retain key executives.

Comparison to Industry Standards

• Stock option grants are a standard form of compensation for executives at large public companies like Disney.
• The vesting schedule of three years is also typical, aligning executive interests with long-term shareholder value.
• Companies like Netflix, Comcast, and Paramount also use similar equity-based compensation plans for their executives.

Stakeholder Impact

• Shareholders may view the equity grants positively as they incentivize management to improve company performance.
• The grants do not have a direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

stock options, restricted stock units, equity compensation, executive compensation, insider trading, Walt Disney Co, DIS, Horacio Gutierrez