Huntington Ingalls (NYSE: HII) director awarded stock in lieu of cash pay
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
DENAULT LEO P reported acquisition or exercise transactions in this Form 4 filing.
Huntington Ingalls Industries director Leo P. Denault received 145 shares of common stock as a grant under the company’s 2022 Long-Term Incentive Stock Plan. These shares were issued in lieu of cash compensation at a reference price of $279.89 per share in an exempt transaction under Rule 16b-3.
After this award, Denault directly holds a total of 4,569.763 common shares. This is a routine, compensation-related equity grant rather than an open-market purchase or sale, so it mainly reflects how the company structures director pay in stock instead of cash.
Positive
- None.
Negative
- None.
Insider Trade Summary
1 transaction reported
Mixed
1 txn
Insider
DENAULT LEO P
Role
null
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Common Stock (SUA) | 145 | $279.89 | $41K |
Holdings After Transaction:
Common Stock (SUA) — 4,569.763 shares (Direct, null)
Footnotes (1)
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Key Figures
Shares granted: 145 shares
Grant price: $279.89 per share
Shares owned after: 4,569.763 shares
3 metrics
Shares granted
145 shares
Common stock grant under 2022 Long-Term Incentive Stock Plan
Grant price
$279.89 per share
Reference value for stock issued in lieu of cash
Shares owned after
4,569.763 shares
Total direct common stock holdings after grant
Key Terms
Long-Term Incentive Stock Plan, Rule 16b-3, Form 4
3 terms
Long-Term Incentive Stock Plan financial
"Shares of common stock issued in lieu of cash pursuant to the Huntington Ingalls Industries, Inc. 2022 Long-Term Incentive Stock Plan"
A long-term incentive stock plan is a company program that pays key employees and executives with company shares or stock-based awards that become theirs only after meeting performance goals or staying with the company for several years. Think of it as a delayed bonus paid in stock that ties pay to future results; investors watch these plans because they influence executive behavior, can dilute existing shares, and affect reported costs and long-term shareholder value.
Rule 16b-3 regulatory
"in an exempt transaction pursuant to Rule 16b-3"
Rule 16b-3 is a Securities and Exchange Commission regulation that exempts certain routine, pre-approved transactions by company insiders from automatic liability for short-term trading profits. It acts like a safe harbor: if an insider follows a formal plan or the board approves specific transactions in advance, profits from buying and selling company stock within six months are not automatically reclaimed. Investors care because the rule clarifies when insider trades are permissible and reduces uncertainty about potential clawbacks.
Form 4 regulatory
"INSIDER FILING DATA (Form 4):"
Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.
FAQ
What insider transaction did HII director Leo P. Denault report?
Leo P. Denault reported receiving 145 shares of Huntington Ingalls Industries common stock. The shares were granted as part of director compensation under the 2022 Long-Term Incentive Stock Plan, rather than through an open-market purchase or sale.
Was Leo P. Denault’s HII stock transaction an open-market trade?
No, the transaction was not an open-market trade. The 145 shares were issued in lieu of cash as a stock award under Huntington Ingalls Industries’ 2022 Long-Term Incentive Stock Plan, in an exempt transaction pursuant to SEC Rule 16b-3.
What plan governed the HII stock grant to Leo P. Denault?
The stock grant to Leo P. Denault was made under the Huntington Ingalls Industries, Inc. 2022 Long-Term Incentive Stock Plan. Shares were issued instead of cash compensation and treated as an exempt insider transaction pursuant to Rule 16b-3.