RLI Corp CAO Kappes reports option, RSU stake
Initial Form 3 for RLI’s chief administrative officer details option awards, RSUs, and ESOP-based indirect share ownership.
Rhea-AI Filing Summary
RLI CORP (RLI) filed an initial Form 3 for Chief Administrative Officer Kathleen Marie Kappes, reporting equity-based holdings in RLI common stock. The filing lists multiple stock option awards on common stock at various exercise prices and expirations, restricted stock units that each convert into one share upon vesting, and indirect ownership through the RLI Corp. Employee Stock Ownership Plan.
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Insider Trade Summary
12 transactions reported
Mixed
12 txns
Insider
Kappes Kathleen Marie
Role
Chief Administrative Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| holding | Common Stock F4, F3 | -- | -- | -- |
| holding | Common Stock F4, F3 | -- | -- | -- |
| holding | Common Stock F4, F3 | -- | -- | -- |
| holding | Common Stock F4, F3 | -- | -- | -- |
| holding | Common Stock F4, F3 | -- | -- | -- |
| holding | Common Stock F4, F3 | -- | -- | -- |
| holding | Common Stock F4, F3 | -- | -- | -- |
| holding | Restricted Stock Unit F6, F5 | -- | -- | -- |
| holding | Restricted Stock Unit F6, F5 | -- | -- | -- |
| holding | Restricted Stock Unit F6, F5 | -- | -- | -- |
| holding | Common Stock F1 | -- | -- | -- |
| holding | Common Stock F2 | -- | -- | -- |
Holdings After Transaction:
Common Stock — 60,500 contracts (Direct);
Restricted Stock Unit — 850 contracts (Direct);
Common Stock — 10,075 shares (Direct);
Common Stock — 11,741.85 shares (Indirect, RLI Corp. Employee Stock Ownership Plan)
Footnotes (6)
- F1. Ownership reflects dividend reinvestment.
- F2. Balance reflects annual company contributions and dividend reinvestment.
- F3. Pursuant to option schedule wherein 20% of the aggregate number of shares granted may be exercised commencing one year from grant date and each year thereafter in 20% increments.
- F4. Stock option grant price adjusted to reflect $2.00 extraordinary dividend declared May 14, 2026.
- F5. These restricted stock units are scheduled to vest 100% on the third anniversary of the date of grant.
- F6. Upon vesting, each restricted stock unit represents the right to receive one share of common stock.
Key Figures
Indirect ESOP shares: 11,741.85 shares
Stock option exercise price: $41.12 per share
Stock option exercise price: $51.01 per share
+5 more
8 metrics
Indirect ESOP shares
11,741.85 shares
Common stock held indirectly through RLI Corp. Employee Stock Ownership Plan as of September 8, 2026
Stock option exercise price
$41.12 per share
Option on 10,000 underlying common shares expiring August 21, 2028
Stock option exercise price
$51.01 per share
Option on 8,000 underlying common shares expiring May 6, 2029
Stock option exercise price
$72.36 per share
Option on 7,000 underlying common shares expiring May 13, 2033
Restricted stock units
300 units
One of three RSU awards, each unit convertible into one share of common stock upon vesting
RSU vesting period
3 years
Restricted stock units scheduled to vest 100% on the third anniversary of grant
Option vesting rate
20% per year
20% of aggregate option shares exercisable one year from grant and 20% each year thereafter
Extraordinary dividend adjustment
$2.00 per share
Stock option grant prices adjusted to reflect $2.00 extraordinary dividend declared May 14, 2026
Key Terms
Restricted Stock Unit, Employee Stock Ownership Plan, extraordinary dividend, dividend reinvestment
4 terms
Restricted Stock Unit financial
"The filing lists several positions titled Restricted Stock Unit with underlying common stock."
A restricted stock unit is a promise from a company to give an employee shares of stock after certain conditions are met, like staying with the company for a set amount of time. It’s like earning a bonus that turns into company stock once you’ve proven your commitment, making it a way to motivate and reward employees.
Employee Stock Ownership Plan financial
"Indirect ownership is reported through the RLI Corp. Employee Stock Ownership Plan."
An employee stock ownership plan (ESOP) is a company-run program that gives workers ownership stakes by allocating or letting them buy company shares, often through a retirement-style account. For investors, ESOPs matter because they align employees’ incentives with company performance—like turning staff into shareholders—which can boost productivity and long-term value but may also concentrate employee retirement savings in company stock, affecting financial risk and share demand.
extraordinary dividend financial
"Stock option grant price adjusted to reflect $2.00 extraordinary dividend declared."
A one-time cash payment to shareholders that is larger than a company’s regular dividend, usually paid from unusual sources such as asset sales, legal settlements, or excess cash. It matters to investors because it can temporarily boost returns and signal how a company is using rare gains, while also affecting the company’s cash reserves and potentially the stock price much like finding a large, unexpected bonus in your bank account.
dividend reinvestment financial
"Ownership and ESOP balances are described as reflecting dividend reinvestment."
Dividend reinvestment is when the money earned from a company's profit sharing, called dividends, is automatically used to buy more shares of that company instead of being received as cash. This process helps investors grow their holdings over time without extra effort, much like using earned interest to buy more of a savings account. It encourages long-term investment growth by continuously increasing the amount of shares owned.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What does the Form 3 filing for RLI (RLI) disclose about Kathleen Kappes’ holdings?
It reports Kathleen Marie Kappes’ initial beneficial ownership, including stock options on RLI common stock at several exercise prices and expirations, restricted stock units that settle in common stock upon vesting, and indirect shares held through the RLI Corp. Employee Stock Ownership Plan.
What stock option positions are reported in the RLI (RLI) Form 3 for Kathleen Kappes?
The filing lists stock options on common stock with exercise prices of $41.12, $51.01, $52.80, $66.295, $69.575, $72.36, and $47.88, each tied to specific expiration dates between 2028 and 2034 and underlying share amounts such as 10,000 or 8,000 shares.
How do the stock options for RLI (RLI) held by Kathleen Kappes vest?
According to a footnote, the options follow a schedule under which 20% of the aggregate shares granted become exercisable starting one year from the grant date, and an additional 20% each year thereafter in equal increments.
What restricted stock units are disclosed for Kathleen Kappes in the RLI (RLI) Form 3?
The Form 3 reports three restricted stock unit awards with underlying common stock of 300, 250, and 300 shares. Each restricted stock unit is scheduled to vest 100% on the third anniversary of its grant date and then represents the right to receive one share of common stock.
How did RLI (RLI) adjust Kathleen Kappes’ stock option grant prices?
A footnote states that the stock option grant prices were adjusted to reflect a $2.00 extraordinary dividend declared on May 14, 2026, meaning exercise prices shown in the Form 3 already incorporate that dividend adjustment.
AI-generated analysis. How Rhea-AI works. Not financial advice.
