Brazilian Electric Power Co (AXIA3) officer reports large stock option awards
Filing Impact
Filing Sentiment
Form Type
3
Rhea-AI Filing Summary
Brazilian Electric Power Co officer Antonio Varejão Godoy filed an initial ownership report showing significant stock option awards. The Form 3 lists stock options over 647,078 and 231,094 underlying common shares, each with an exercise price of R$42.00 per share.
The options were granted under the company’s restricted share-based compensation program and become exercisable only if certain performance goals and other conditions are met. One-third of each grant vests three years from the grant date, with the remainder vesting on the fourth and fifth anniversaries.
Vested options must be exercised within 120 days after each maturity period or they lapse, and any shares received upon exercise are subject to a 180-day lock-up during which they cannot be sold, transferred, or encumbered.
Positive
- None.
Negative
- None.
Insider Trade Summary
2 transactions reported
Mixed
2 txns
Insider
Varejao Godoy Antonio
Role
See Remarks*
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| holding | Stock Options | -- | -- | -- |
| holding | Stock Options | -- | -- | -- |
Holdings After Transaction:
Stock Options — 647,078 shares (Direct)
Footnotes (1)
- The stock options were issued pursuant to the Eletrobras - Brazilian Electric Power Co.'s (the "Company") restricted share based compensation program. Exercise is conditioned up the achievement of certain performance goals, as set forth in the award agreement, and the satisfaction of certain other conditions. 1/3 of the stock options vest 3 years from grant date, with the remaining vesting on the 4th and 5th anniversaries from grant date, subject to certain conditions, as set forth in the award agreement. The reporting person must exercise vested options within 120 days after each respective maturity period, failing which the options lapse. Upon exercise, the reporting person is subject to a lock-up period of 180 calendar days during which the shares may not be sold, transferred, or encumbered. The exercise price is R$42.00 per share accrues interest at a rate of 5% per annum from grant date to exercise date and is subject to certain other adjustments.
FAQ
What does the Form 3 for AXIA show about Antonio Varejão Godoy’s holdings?
The Form 3 reports that officer Antonio Varejão Godoy holds stock options linked to 647,078 and 231,094 common shares. These options are part of a restricted share-based compensation program with performance, vesting, and exercise conditions attached.
What is the exercise price of the Brazilian Electric Power Co stock options on this Form 3?
The stock options have an exercise price of R$42.00 per share. This price accrues interest at 5% per year from the grant date until exercise, and may be adjusted under conditions described in the award agreement.
How do the vesting terms work for AXIA stock options reported in this Form 3?
One-third of the reported stock options vest three years from the grant date. The remaining portions vest on the fourth and fifth anniversaries, subject to performance goals and other conditions set out in the award agreement.
What happens if the AXIA stock options are not exercised after vesting?
Vested options must be exercised within 120 days after each maturity period. If they are not exercised within that 120-day window, the options lapse and are no longer available to the reporting person.
Is there a lock-up period after exercising the Brazilian Electric Power Co options?
Yes. After exercising the options, the resulting shares are subject to a 180-day lock-up period. During this time, the shares cannot be sold, transferred, or encumbered, limiting immediate liquidity from any exercise.
Are the AXIA stock options subject to performance conditions?
The options were issued under a restricted share-based compensation program and are conditioned on achieving certain performance goals. They also require satisfaction of additional conditions described in the award agreement before they can be exercised.