Federal Signal CEO exercises options, pays taxes
Federal Signal Corp President & CEO Jennifer L. Sherman exercised stock options and had shares withheld to cover related tax obligations, without any open-market buying or selling.
Rhea-AI Filing Summary
Federal Signal Corp President & CEO Jennifer L. Sherman exercised stock options and had shares withheld to cover related tax obligations, without any open-market buying or selling. She exercised 59,242 stock options at $12.66 per share, converting them into common stock.
To satisfy the exercise price and taxes, 29,680 shares were delivered at $121.61 per share, and a further 7,695 shares were withheld at $117.49 per share in separate tax-withholding dispositions. After these transactions, she directly held about 641,724 common shares and indirectly held 60,221.4278 units in the company’s 401(k) plan, which were adjusted based on the share price and included 828.7732 shares acquired through a dividend reinvestment plan.
Positive
- None.
Negative
- None.
Insider Trade Summary
59,242 shares exercised/converted
Exercise
5 txns
Insider
SHERMAN JENNIFER L
Role
President & CEO
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise Price or Tax Liability | Common Stock | 7,695 | $117.49 | $904K |
| Exercise | Stock Option (right-to-buy) | 59,242 | $0.00 | $0.00 |
| Exercise | Common Stock | 59,242 | $12.66 | $750K |
| Exercise Price or Tax Liability | Common Stock | 29,680 | $121.61 | $3.61M |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Stock Option (right-to-buy) — 0 contracts (Direct);
Common Stock — 641,723.6085 shares (Direct);
Common Stock — 60,221.4278 shares (Indirect, held by 401(k) plan)
Footnotes (3)
- F1. 828.7732 shares were acquired through the dividend reinvestment plan.
- F2. Units held in the Issuer 401(k) plan, which are convertible into Issuer common stock, were adjusted from 60,195.9816 to 60,221.4278 based on the Issuer price per share of $121.61 on 05/01/2026.
- F3. The option vested in three equal installments on May 05, 2017, 2018, and 2019. The option was set to expire on May 05, 2026. The reporting person used 29,680 shares of the option to satisfy the exercise price and taxes related to the option and will hold the remaining option shares.
Key Figures
Options exercised: 59,242 shares
Exercise price: $12.66/share
Shares for taxes and exercise: 29,680 shares at $121.61
+4 more
7 metrics
Options exercised
59,242 shares
Stock options exercised at $12.66 per share
Exercise price
$12.66/share
Exercise price for 59,242 stock options
Shares for taxes and exercise
29,680 shares at $121.61
Delivered to satisfy option exercise price and taxes
Additional tax withholding
7,695 shares at $117.49
Tax-withholding disposition on May 4, 2026
Direct holdings after transactions
641,723.6085 shares
Common stock held directly following reported transactions
Indirect 401(k) units
60,221.4278 units
Units in issuer 401(k) plan convertible into common stock
DRIP shares acquired
828.7732 shares
Acquired via dividend reinvestment plan
Key Terms
tax-withholding disposition, Stock Option (right-to-buy), dividend reinvestment plan, 401(k) plan, +1 more
5 terms
tax-withholding disposition financial
"transaction_action": "tax-withholding disposition""
A tax-withholding disposition is an event or transaction—such as selling or transferring securities, exercising options, or receiving compensation—that triggers a requirement to hold back part of the payment and remit it to tax authorities. It matters to investors because it reduces the cash they receive immediately and can change the timing and amount of taxable income, like a cashier taking a portion of your sale proceeds to pay taxes before you get the rest.
Stock Option (right-to-buy) financial
"security_title": "Stock Option (right-to-buy)""
dividend reinvestment plan financial
"shares were acquired through the dividend reinvestment plan."
A dividend reinvestment plan lets shareholders automatically use cash dividends to buy more shares of the same company instead of receiving the money. It matters to investors because it turns regular payouts into a steady way to grow ownership and take advantage of compound returns—like having your savings automatically buy additional slices of a pie over time—while often reducing transaction costs and smoothing purchase timing.
401(k) plan financial
"Units held in the Issuer 401(k) plan, which are convertible"
A 401(k) plan is a workplace retirement account that lets employees set aside part of their pay into a tax-advantaged savings pot, often with employers adding matching contributions — like a workplace piggy bank for future income. It matters to investors because the amount people save and how employers fund these plans influence consumer spending, corporate payroll costs and the flow of money into financial markets, which can affect stock prices and company valuations.
derivative exercise/conversion financial
"transaction_action": "derivative exercise/conversion""
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Federal Signal (FSS) CEO Jennifer Sherman do in this Form 4?
Jennifer Sherman exercised stock options and had shares withheld to cover exercise costs and taxes, with no open-market trades. The filing shows routine compensation-related activity rather than discretionary buying or selling of Federal Signal common stock in the market.
How many Federal Signal options did the CEO exercise in this filing?
The CEO exercised 59,242 stock options into Federal Signal common stock at an exercise price of $12.66 per share. These options were nearing expiration and had previously vested in equal installments in 2017, 2018, and 2019, according to the filing footnotes.
What is the role of tax-withholding dispositions in this Federal Signal Form 4?
Tax-withholding dispositions use shares to cover exercise costs and tax obligations when options are exercised or awards vest. In this filing, 29,680 and 7,695 shares were delivered at $121.61 and $117.49 respectively, reducing cash outlay while settling required tax liabilities.
What changes occurred in Jennifer Sherman’s Federal Signal 401(k) holdings?
Units in the issuer’s 401(k) plan were adjusted from 60,195.9816 to 60,221.4278 based on a $121.61 share price. The filing notes that 828.7732 shares were acquired through the plan’s dividend reinvestment feature, increasing her indirect retirement-related exposure to Federal Signal stock.
AI-generated analysis. How Rhea-AI works. Not financial advice.
