Form 4: Xerox Director Priscilla Hung Awarded Over 44,000 Deferred Stock Units

Xerox Holdings Corp. Director Priscilla Hung was awarded 44,378 Deferred Stock Units, increasing her beneficial ownership to 62,225 units, as part of routine director compensation.

Summary

• Priscilla Hung, a Director of Xerox Holdings Corporation (XRX), acquired 44,378 Deferred Stock Units (DSUs) on May 21, 2025.
• The DSUs were awarded at a price of $0, indicating they are a form of compensation.
• Each DSU represents the right to receive one share of common stock upon the reporting person's termination of service as a director or death, subject to any applicable deferral period.
• These newly acquired DSUs will vest on May 21, 2026.
• Following this transaction, Ms. Hung's total beneficial ownership of DSUs stands at 62,225 units.
• The reported balance of 62,225 DSUs includes an adjustment for 1,695 DSUs awarded from dividend equivalents attributable to DSUs held as of relevant record dates.

Sentiment

Score: 7

Explanation: The award of deferred stock units to a director is a positive sign of alignment between management and shareholder interests, as it ties the director's future compensation to the company's stock performance. This is a routine and expected event for corporate governance.

Positives

• The award of Deferred Stock Units to a director aligns their interests with those of shareholders, as the value of the compensation is tied to the company's stock performance.
• This transaction represents a routine component of director compensation, indicating stable corporate governance practices.

Future Outlook

The Deferred Stock Units awarded to Director Priscilla Hung are set to vest on May 21, 2026, at which point they will convert into common stock, subject to the terms of the award.

Industry Context

The practice of compensating directors with equity-based awards like Deferred Stock Units is a common and widely accepted standard across various industries for publicly traded companies. This method is designed to align the long-term interests of directors with those of the company's shareholders.

Comparison to Industry Standards

• The award of equity-based compensation, specifically Deferred Stock Units, to a director is a standard practice in corporate governance across public companies globally.
• This method is widely adopted by companies like Apple Inc., Microsoft Corp., and Alphabet Inc. to incentivize long-term value creation and align director interests with shareholder returns, making Xerox's approach consistent with industry benchmarks.

Corporate Governance

Stakeholder Impact

• Shareholders: The award of equity-based compensation to a director aligns their interests with those of shareholders, potentially encouraging decisions that enhance long-term stock value.

Next Steps

• The awarded Deferred Stock Units are scheduled to vest on May 21, 2026.

Key Dates

Recommendation

Keywords

Xerox Holdings Corporation, XRX, SEC Form 4, Insider Transaction, Deferred Stock Units, DSU, Director Compensation, Corporate Governance, Equity Award