Armour REIT CIO exercises 4,000 phantom stock units
Armour Residential REIT, Inc. (ARR) reported that Co-Chief Investment Officer Desmond Macauley converted phantom stock into common shares on August 21, 2026.
Rhea-AI Filing Summary
Armour Residential REIT, Inc. (ARR) reported that Co-Chief Investment Officer Desmond Macauley converted phantom stock into common shares on August 21, 2026. He exercised 4,000 units of phantom stock, receiving 2,665 shares of common stock and converting 1,335 units into cash solely to pay income taxes on the vested stock. Following the transaction, he held 68,500 units of phantom stock directly.
Positive
- None.
Negative
- None.
Insider Trade Summary
4,000 shares exercised/converted
Exercise
3 txns
Insider
Macauley Desmond
Role
Co-Chief Investment Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Phantom Stock F2, F1 | 4,000 | $0.00 | $0.00 |
| Exercise | Common Stock, par value $0.001 per share F1 | 4,000 | $0.00 | $0.00 |
| Tax Withholding | Common Stock, par value $0.001 per share F1 | 1,335 | $16.32 | $22K |
Holdings After Transaction:
Phantom Stock — 68,500 contracts (Direct);
Common Stock, par value $0.001 per share — 9,135 shares (Direct)
Footnotes (2)
- F1. On August 21, 2026, the reporting person elected to convert 2,665 of the 4,000 shares of vested phantom stock into 2,665 shares of ARMOUR common stock. The reporting person elected to convert the remaining 1,335 shares of vested phantom stock into cash solely to pay income taxes on the vested stock. The 4,000 shares are part of, and relate to, phantom stock vesting over a five-year period, which was reported on Form 4 reports filed by the reporting person on April 30, 2025 and June 18, 2026.
- F2. Each unit of phantom stock is the economic equivalent of one share of ARMOUR common stock.
Key Figures
Phantom stock units exercised: 4,000 units
Phantom stock converted to common stock: 2,665 shares
Phantom stock converted to cash for taxes: 1,335 units
+2 more
5 metrics
Phantom stock units exercised
4,000 units
Units of phantom stock exercised on August 21, 2026
Phantom stock converted to common stock
2,665 shares
Units converted into ARR common stock from vested phantom stock
Phantom stock converted to cash for taxes
1,335 units
Vested phantom stock converted into cash solely to pay income taxes
Tax withholding share price
$16.32 per share
Price used for 1,335 shares disposed of under code F
Phantom stock units held after transaction
68,500 units
Direct phantom stock holdings following the derivative transaction
Key Terms
phantom stock, economic equivalent, tax liability
3 terms
phantom stock financial
"Each unit of phantom stock is the economic equivalent of one share"
A phantom stock is a form of compensation that gives employees or executives the benefits of stock ownership, such as the increase in stock value, without actually giving them real shares. It acts like a promise to pay the employee the equivalent value of company stock later, often as a bonus or incentive. This allows companies to motivate and reward staff without diluting ownership or transferring actual shares.
economic equivalent financial
"Each unit of phantom stock is the economic equivalent of one share"
tax liability financial
"cash solely to pay income taxes on the vested stock"
FAQ
What did ARR executive Desmond Macauley report in this Form 4?
Desmond Macauley, Co-Chief Investment Officer of Armour Residential REIT, Inc. (ARR), reported exercising 4,000 units of phantom stock on August 21, 2026, receiving 2,665 common shares and converting 1,335 units into cash to cover income taxes on the vested stock.
How many ARR phantom stock units did Desmond Macauley exercise and what was the outcome?
He exercised 4,000 phantom stock units. According to the disclosure, 2,665 units were converted into 2,665 shares of ARR common stock, and 1,335 units were converted into cash used solely to pay income taxes on the vested stock.
How many ARR phantom stock units does Desmond Macauley hold after this transaction?
After the August 21, 2026 transaction, Desmond Macauley directly held 68,500 units of phantom stock. Each unit of phantom stock is stated to be the economic equivalent of one share of ARR common stock.
What does the tax withholding transaction in ARR’s Form 4 represent?
The Form 4 reports that 1,335 common shares, valued at $16.32 per share, were disposed of under code F. The footnote explains these shares were effectively converted into cash solely to pay income taxes on the vested phantom stock.
Was Desmond Macauley’s ARR Form 4 transaction under a Rule 10b5-1 trading plan?
The Rule 10b5-1 checkbox is marked false, indicating the reported transactions were not affirmed as being made pursuant to a Rule 10b5-1 trading plan based on this disclosure.
How is ARR phantom stock described in this Form 4?
Each unit of phantom stock is described as the economic equivalent of one share of Armour Residential REIT, Inc. common stock. The 4,000 units involved are part of phantom stock vesting over a five-year period previously reported in earlier Form 4 filings.
AI-generated analysis. How Rhea-AI works. Not financial advice.
