Form 4: Woodward EVP McLevige Reports RSU Grant, Tax Withholding

Woodward, Inc.'s EVP and President of Aerospace, Shawn M. McLevige, reported the acquisition of 893 restricted stock units and the disposition of 99 shares for tax withholding.

Summary

• Shawn M. McLevige, EVP and President, Aerospace at Woodward, Inc. (WWD), reported transactions on February 10, 2026.
• Acquired 893 shares of Woodward, Inc. Common Stock through a Restricted Stock Unit (RSU) award at a price of $0.00 per share.
• Disposed of 99 shares of Woodward, Inc. Common Stock at a price of $391.53 per share, which were withheld by the Issuer to cover withholding taxes related to the vesting of previously granted RSUs.
• Following these transactions, McLevige directly beneficially owns 3,149 shares of Woodward, Inc. Common Stock.
• Additionally, McLevige indirectly beneficially owns 846 shares through the Woodward Retirement Savings Plan, calculated as of February 9, 2026.
• The newly granted RSUs will vest at a rate of 34% on February 10, 2027, and 33% on each subsequent one-year anniversary.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a routine executive compensation filing, with the RSU grant indicating continued incentive alignment, which is generally positive for governance and long-term executive commitment.

Positives

• The grant of 893 Restricted Stock Units aligns executive incentives with long-term shareholder value, as the value of these units is tied to the company's stock performance.
• The RSU award includes provisions for additional shares in connection with dividend reinvestment, further enhancing potential long-term holdings.

Future Outlook

The newly granted Restricted Stock Units will vest over a three-year period, with 34% vesting on February 10, 2027, and 33% on each subsequent one-year anniversary, indicating a continued long-term incentive structure for the executive.

Industry Context

StockSavvy.ai notes that executive stock grants and tax-related dispositions are routine events in corporate compensation, reflecting standard practices for aligning executive interests with shareholder value and managing tax obligations upon equity vesting. This filing provides transparency into a key executive's equity holdings and compensation structure within the aerospace industry.

Comparison to Industry Standards

• The grant of Restricted Stock Units (RSUs) as a form of executive compensation is a common practice across various industries, including aerospace, aligning executive incentives with long-term company performance.
• The withholding of shares to cover tax obligations upon RSU vesting is a standard and expected procedure, consistent with compensation practices at comparable companies such as Boeing (BA) or Raytheon Technologies (RTX) for their executives receiving equity awards.

Stakeholder Impact

• Shareholders: Provides transparency into executive equity ownership and compensation, reinforcing alignment of interests.
• Employees: Reflects standard executive compensation practices, which can influence broader compensation strategies.

Next Steps

• First tranche of newly granted Restricted Stock Units (34%) will vest on February 10, 2027.
• Subsequent tranches of RSUs (33% each) will vest on the one-year anniversaries following the first vesting date.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation activities, specifically the grant of restricted stock units and shares withheld for tax purposes. It does not contain information that would fundamentally alter the investment thesis for Woodward, Inc., thus a 'hold' recommendation is appropriate as it provides transparency but no new material financial performance data.

Keywords

Woodward Inc, WWD, Form 4, Insider Transaction, Restricted Stock Units, Executive Compensation, Stock Grant, Tax Withholding, Aerospace