AVAV filing shows $7.7M stock award, $3.9M tax withholding by CEO
Rhea-AI Filing Summary
AeroVironment (NASDAQ:AVAV) filed a Form 4 disclosing CEO Wahid Nawabi’s June 24, 2025 equity transactions.
- 39,938 shares acquired through vesting of Performance RSUs (code M) at $0 exercise cost.
- 20,281 shares withheld (code F) at $193.28 to cover taxes, valued ≈ $3.9 million.
- Net increase: 19,657 shares; total direct ownership now 134,831 shares.
- PRSUs tied to FY22-25 performance; payout could range 0-250% of target.
No open-market sale occurred; all dispositions were tax-related, indicating continued alignment of executive and shareholder interests.
Positive
- CEO’s direct holdings increased by 19,657 shares, reinforcing alignment with shareholders
- Gross award value ≈ $7.7 million, indicating strong performance-based payout
Negative
- None.
Insights
CEO boosts stake by 19,657 shares; >$7 M gross award signals confidence.
The filing shows a sizeable PRSU vesting worth about $7.7 M (39,938 × $193.28). Only 20,281 shares were surrendered for withholding, leaving a net addition of 19,657 shares. That represents roughly a 17% rise versus his post-2024 ownership base (implicit from 115,174 shares pre-event). Code F confirms no discretionary sale, reducing supply-side pressure. With total holdings now 134,831 shares—market value ≈ $26 M—the CEO remains heavily invested, a bullish governance signal. Investors should note the award’s performance linkage: future grants hinge on achieving multi-year KPIs, aligning pay with long-term value creation. Liquidity impact is minimal; shares came from treasury, not market purchases.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Performance Restricted Stock Awards | 19,860 | $0.00 | -- |
| Exercise | Common Stock | 39,938 | $0.00 | -- |
| Tax Withholding | Common Stock | 20,281 | $193.28 | $3.92M |
Footnotes (1)
- Each Performance Restricted Stock Unit (PRSU) represents the contingent right to receive, following vesting, shares of the issuer's common stock. The resulting number of shares of the issuer's common stock acquired upon vesting of the PRSUs is contingent upon the achievement of pre-established performance metrics, as approved by the Company's Compensation Committee, over a three-year performance period beginning on May 1, 2022 and ending on April 30, 2025. The target number of units subject to the award is presented in the table. The number of units that vest may be 0% to 250% of the target number of units, depending on performance. Disposition made pursuant to a net settlement whereby shares of stock were tendered to satisfy tax withholding obligations arising in the conjunction with the vesting of previously issued Performance Restricted Stock Units. Unless earlier forfeited under the terms of the PRSU, each PRSU vests and converts into shares of the issuer's common stock upon certification by the Company's Compensation Committee of the achievement of the performance metrics of the PRSUs (the "Certification Date"). Upon conversion of the PRSUs, the Reporting Person received 39,938 shares of common stock.
