Ambac (AMBC) amends Form 4 to correct option expiry to 10/03/2035
Rhea-AI Filing Summary
David Trick, Exec VP, CFO & Treasurer of Ambac Financial Group, Inc. (AMBC), reported an amended Form 4 disclosing two equity awards on 10/03/2025. He received a Performance Stock Option for 350,375 shares with an exercise price of $8.97 and an expiration date corrected to 10/03/2035. The option becomes eligible to vest beginning one year after grant and vests over five years if certain sustained stock price hurdles are met: $18.00 (40%), $21.50 (20%), $25.00 (20%), and $30.00 (20%). He also received 66,519 Restricted Stock Units (RSUs) that vest after one year but will settle at the earlier of the fifth anniversary or his termination (if that termination occurs after the one-year vesting date). The filing was amended to correct the option expiration date that was initially reported incorrectly.
Positive
- 350,375 performance option ties pay to clear multi-year price hurdles ($18.00-$30.00)
- 66,519 RSUs vest after one year and settle by the fifth anniversary, encouraging retention
Negative
- Amendment required to correct the performance option expiration date, indicating an initial reporting error
Insights
TL;DR: Significant incentive awards tied to multi-year stock-price hurdles, with a corrected expiration date.
What it means: The 350,375 performance option and 66,519 RSUs create multi-year incentive alignment by tying a large portion of pay to sustained stock-price performance and continued service.
Why it matters: The performance option vests only if sustained stock prices exceed specific thresholds over a five-year window (notably $18.00 through $30.00), which links executive reward to long-term share-price outcomes. The amended Form 4 corrects the option expiration to 10/03/2035, clarifying the full ten-year exercise window for the award.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Performance Stock Option | 350,375 | $0.00 | -- |
| Grant/Award | Restricted Stock Units | 66,519 | $0.00 | -- |
Footnotes (1)
- The Performance Stock Option shall be eligible to vest beginning one year after the grant date based on Ambac Financial Group, Inc.'s (the "Company") achievement of the certain price hurdles related to the shares of Common Stock, during the five (5) year period following the grant date as follows: (i) 40 % shall vest on the date on which the sustained stock price first exceeds $18.00 per share; (ii) 20% shall vest on the date on which the sustained stock price first exceeds $21.50 per share; (iii) 20% shall vest on the date on which the sustained stock price first exceeds $25.00 per share; and (iv) 20% shall vest on the date on which the sustained stock price first exceeds $30.00 per share. On October 3, 2025, the reporting person filed a Form 4 that inadvertently reported the expiration date of the performance stock option award as October 3, 2025. The correct expiration date is October 3, 2035. Each restricted stock unit ("RSU") represents a contingent right to receive one share of the common stock of the Company. On October 3, 2025 the reporting person received a special RSU grant that will vest and become non-forfeitable after one year (subject to limited exceptions), but will not settle until the earlier of the fifth (5) year anniversary of the grant date or the reporting person's termination date, provided such termination occurs after the one year vesting date.
