American Eagle (NYSE: AEO) legal chief nets shares after RSU vesting and tax withholding
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
American Eagle Outfitters executive Beth M. Henke exercised equity awards and had shares withheld for taxes. On April 2, 2026, she exercised dividend equivalent rights and restricted stock units that were economically equivalent to a total of 6,265 shares of common stock at an exercise price of $0.00 per share. These awards, including dividend equivalents that vest with the underlying RSUs, converted into common stock as part of her compensation program. To cover tax obligations on this vesting, 1,911 shares of common stock were automatically withheld at $16.84 per share. After these routine compensation-related transactions and tax withholding, she directly owned 21,529 shares of American Eagle Outfitters common stock.
Positive
- None.
Negative
- None.
Insider Trade Summary
6,265 shares exercised/converted
Mixed
5 txns
Insider
Henke Beth M
Role
EVP & Chief Legal Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Dividend Equivalent Rights | 142 | $0.00 | -- |
| Exercise | Restricted Stock Unit | 3,997 | $0.00 | -- |
| Exercise | Restricted Stock Unit | 2,126 | $0.00 | -- |
| Exercise | Common Stock, without par value | 6,265 | $0.00 | -- |
| Tax Withholding | Common Stock, without par value | 1,911 | $16.84 | $32K |
Holdings After Transaction:
Dividend Equivalent Rights — 378 shares (Direct);
Restricted Stock Unit — 7,993.34 shares (Direct);
Common Stock, without par value — 23,440 shares (Direct)
Footnotes (1)
- The dividend equivalent rights accrued on previously awarded restricted stock units (RSUs) which vest proportionately with the RSUs to which they relate. Each dividend equivalent right is the economic equivalent of one share of American Eagle Outfitters common stock. Each restricted stock unit represents a contingent right to receive one share of American Eagle Outfitters common stock. The restricted stock units vest in three equal annual installments beginning on the first anniversary of the date of grant.
Key Figures
Shares from award exercises: 6,265 shares
Tax withholding shares: 1,911 shares
Withholding price: $16.84 per share
+4 more
7 metrics
Shares from award exercises
6,265 shares
Common stock acquired via dividend equivalents and RSU exercises on April 2, 2026
Tax withholding shares
1,911 shares
Common stock withheld to cover taxes on April 2, 2026
Withholding price
$16.84 per share
Price used for tax-withholding disposition of 1,911 shares
Post-transaction holdings
21,529 shares
Direct ownership of AEO common stock after transactions
Dividend equivalent rights exercised
142 units
Dividend equivalent rights converting into common stock equivalents
RSU tranche exercised (2028 expiry)
3,997 units
Restricted stock units converting into common stock, expire April 2, 2028
RSU tranche exercised (2027 expiry)
2,126 units
Restricted stock units converting into common stock, expire April 4, 2027
Key Terms
Dividend Equivalent Rights, restricted stock unit, vest in three equal annual installments, Exercise or conversion of derivative security, +1 more
5 terms
Dividend Equivalent Rights financial
"The dividend equivalent rights accrued on previously awarded restricted stock units (RSUs) which vest proportionately with the RSUs"
Dividend equivalent rights are promises that mirror the cash payments shareholders get from a company’s profits, but they are paid to holders of certain awards (like stock options or restricted stock units) rather than to actual shares. Think of them as a paycheck top‑up that matches dividends while the award is not yet a real stock, and they matter to investors because they add to employee compensation costs and potential share dilution, affecting company profitability and per‑share value.
restricted stock unit financial
"Each restricted stock unit represents a contingent right to receive one share of American Eagle Outfitters common stock."
A restricted stock unit is a promise from a company to give an employee shares of stock after certain conditions are met, like staying with the company for a set amount of time. It’s like earning a bonus that turns into company stock once you’ve proven your commitment, making it a way to motivate and reward employees.
vest in three equal annual installments financial
"The restricted stock units vest in three equal annual installments beginning on the first anniversary of the date of grant."
Exercise or conversion of derivative security financial
"transaction_code_description": "Exercise or conversion of derivative security""
Payment of exercise price or tax liability by delivering securities financial
"transaction_code_description": "Payment of exercise price or tax liability by delivering securities""
FAQ
What did AEO executive Beth M. Henke report in this Form 4 filing?
Beth M. Henke reported the exercise of equity awards that converted into common stock and related tax withholding. She exercised dividend equivalent rights and restricted stock units, then had some shares withheld to satisfy taxes, resulting in updated direct ownership of American Eagle Outfitters common stock.
What is Beth M. Henke’s direct ownership in American Eagle (AEO) after these Form 4 transactions?
Following the equity award exercises and tax withholding, Beth M. Henke directly owned 21,529 shares of American Eagle Outfitters common stock. This updated holding reflects the net shares remaining after converting derivative awards and the automatic share withholding for tax obligations.
What are dividend equivalent rights and restricted stock units mentioned in AEO’s Form 4?
Dividend equivalent rights accrue on restricted stock units and mirror common stock dividends, each equal to one share economically. Restricted stock units are contingent rights to receive common shares that typically vest in installments, aligning executive compensation with company performance over multiple years.