Dividend-equivalent RSUs boost Iridium (IRDM) director Kay Sears’ holdings
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Iridium Communications Inc. director Kay Sears reported a compensation-related acquisition of common stock. Sears received 29.8 shares through dividend equivalent rights tied to existing restricted stock units, following a declared quarterly cash dividend of $0.15 per share. After this grant, Sears directly holds 30,113.9 shares of Iridium common stock. Each dividend equivalent right will deliver one share when the underlying restricted stock units settle and remains subject to the same vesting terms, with the grant approved by Iridium’s board under Rule 16b-3.
Positive
- None.
Negative
- None.
Insider Trade Summary
1 transaction reported
Mixed
1 txn
Insider
Sears Kay
Role
null
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Common Stock | 29.8 | $0.00 | -- |
Holdings After Transaction:
Common Stock — 30,113.9 shares (Direct, null)
Footnotes (1)
- [object Object]
Key Figures
Shares acquired via dividend equivalents: 29.8 shares
Price per share for grant: $0.00 per share
Post-transaction direct holdings: 30,113.9 shares
+3 more
6 metrics
Shares acquired via dividend equivalents
29.8 shares
Grant of dividend equivalent rights on restricted stock units, transaction date June 30, 2026
Price per share for grant
$0.00 per share
Compensation-related award, no cash paid by the director
Post-transaction direct holdings
30,113.9 shares
Common stock directly held by Kay Sears following the transaction
Quarterly cash dividend
$0.15 per share
Declared May 20, 2026 on Iridium common stock
Dividend record date
June 15, 2026
Stockholders of record date for the $0.15 per share dividend
Dividend payment date
June 30, 2026
Scheduled payment date for the quarterly cash dividend
Key Terms
restricted stock units, dividend equivalent right, quarterly cash dividend, Rule 16b-3, +1 more
5 terms
restricted stock units financial
"equivalent rights accrued as a result of the Dividend on restricted stock units with respect to the Issuer's common stock"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
dividend equivalent right financial
"Each dividend equivalent right entitles the reporting person to receive one share of the Issuer's common stock"
quarterly cash dividend financial
"declared a quarterly cash dividend in the amount of $0.15 per share of its common stock"
A quarterly cash dividend is a payment made by a company to its shareholders four times a year, usually based on its profits. It is like a regular bonus or reward for owning the company's stock, providing shareholders with income. Many investors see these payments as a sign of the company's stability and its ability to generate consistent profits.
Rule 16b-3 regulatory
"The grant of dividend equivalent rights was approved by the Issuer's board of directors 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.
stockholders of record financial
"payable on June 30, 2026 to stockholders of record of the common stock at the close of business on June 15, 2026"
Stockholders of record are the people or entities whose names appear on a company's official shareholder list on a specific cutoff date set by the company or its transfer agent; only those listed are entitled to receive dividends, vote at shareholder meetings, or participate in other corporate actions. Think of it like a guest list for an event: being on the list on the set day determines who gets the benefits and rights, so investors must own shares before the cutoff to qualify.
FAQ
What did Iridium Communications (IRDM) director Kay Sears report on this Form 4?
Kay Sears reported receiving 29.8 Iridium common shares through dividend equivalent rights linked to existing restricted stock units. This reflects a compensation-related adjustment driven by the company’s declared cash dividend, rather than an open-market stock purchase or sale.
What are dividend equivalent rights in Iridium’s (IRDM) restricted stock units?
Dividend equivalent rights give the holder additional share-based credits when the company pays dividends. For Kay Sears, each dividend equivalent right corresponds to one Iridium common share upon settlement of the original restricted stock units and follows the same vesting and settlement conditions.
Was Kay Sears’ Iridium (IRDM) transaction an open-market stock purchase?
No, the transaction was not an open-market purchase. The 29.8 shares reflect a grant of dividend equivalent rights tied to existing restricted stock units, with no purchase price per share and terms approved under Rule 16b-3 by Iridium’s board of directors.
How were the dividend equivalent rights for Kay Sears approved at Iridium (IRDM)?
The grant of dividend equivalent rights to Kay Sears was approved by Iridium’s board of directors under Rule 16b-3. This rule governs insider transactions involving equity compensation, allowing board-approved awards to receive specific regulatory treatment under the Securities Exchange Act of 1934.