Sonic Automotive CEO granted 69,872 performance RSUs
SMITH DAVID BRUTON reported acquisition or exercise transactions in this Form 4 filing.
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Form Type
4
Rhea-AI Filing Summary
SMITH DAVID BRUTON reported acquisition or exercise transactions in this Form 4 filing.
SONIC AUTOMOTIVE INC Chairman and CEO David Bruton Smith received an award of 69,872 performance-based restricted stock units tied to Class A Common Stock as part of his compensation. Each unit represents a contingent right to one share, equivalent cash value, or a combination, at the Compensation Committee’s discretion.
If the performance criteria are achieved, 25% of the units vest on March 31, 2027, 30% on February 11, 2028, and 45% on February 11, 2029. Following this grant, Smith holds 109,648 performance-based restricted stock units directly.
Insider Trade Summary
Grant/Award: 69,872 shares
Grant/Award
1 txn
Insider
SMITH DAVID BRUTON
Role
Chairman and CEO
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Performance-Based Restricted Stock Units | 69,872 | $0.00 | $0.00 |
Holdings After Transaction:
Performance-Based Restricted Stock Units — 109,648 contracts (Direct)
Footnotes (2)
- F1. Each performance-based restricted stock unit represents a contingent right to receive, upon the satisfaction of certain performance criteria, one share of Class A Common Stock, the equivalent cash value, or a combination of both, at the option and sole discretion of the Compensation Committee of Sonic Automotive, Inc.
- F2. If the performance criteria are met, this award will vest in three installments, with twenty-five percent (25%) of the units vesting on March 31, 2027, thirty percent (30%) of the units vesting on February 11, 2028, and forty-five percent (45%) of the units vesting on February 11, 2029.
Key Figures
RSUs granted: 69,872 units
RSUs after grant: 109,648 units
First vesting tranche: 25%
+3 more
6 metrics
RSUs granted
69,872 units
Performance-based restricted stock units granted to CEO David Bruton Smith
RSUs after grant
109,648 units
Total performance-based RSUs held directly following the transaction
First vesting tranche
25%
Units vest on March 31, 2027 if performance criteria are met
Second vesting tranche
30%
Units vest on February 11, 2028 if performance criteria are met
Third vesting tranche
45%
Units vest on February 11, 2029 if performance criteria are met
Underlying shares per unit
1 share
Each RSU corresponds to one share of Class A Common Stock or cash equivalent
Key Terms
Performance-Based Restricted Stock Units, Class A Common Stock, Compensation Committee, vesting
4 terms
Performance-Based Restricted Stock Units financial
"Each performance-based restricted stock unit represents a contingent right to receive..."
Performance-based restricted stock units are a type of employee equity award that converts into company shares only if predefined financial or operational targets are met over a set period. Think of it like a bonus check that becomes stock only when specific goals are hit; it ties pay to results, aligning managers’ incentives with shareholders. Investors care because these awards affect future share count, executive incentives, and signal how management’s success will be measured and rewarded.
Class A Common Stock financial
"one share of Class A Common Stock, the equivalent cash value, or a combination of both"
Class A common stock is a category of a company’s shares that carries a specific set of ownership rights—most commonly defined voting power and claims on dividends—set out in the company’s charter. For investors it matters because the class determines how much influence you have over corporate decisions, the share’s likely dividend and trading behavior, and how it compares in value to other share classes, like choosing a particular seat with different privileges at the company’s decision-making table.
Compensation Committee financial
"at the option and sole discretion of the Compensation Committee of Sonic Automotive, Inc."
A compensation committee is a group within a company's leadership responsible for setting and reviewing how much top executives and employees are paid, including salaries, bonuses, and benefits. It matters to investors because fair and effective pay decisions can influence a company's performance, leadership motivation, and overall governance, helping ensure that the company’s management is aligned with shareholders’ interests.
vesting financial
"this award will vest in three installments, with twenty-five percent (25%) of the units vesting..."
Vesting is the process by which you earn full ownership of something, like company stock or a retirement benefit, over time. It’s like earning the right to keep a gift piece by piece the longer you stay with a company, making sure employees stay committed before they receive all the benefits.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What insider transaction did Sonic Automotive (SAH) report in this Form 4?
Sonic Automotive reported that Chairman and CEO David Bruton Smith received a grant of 69,872 performance-based restricted stock units. These units are tied to Class A Common Stock and form part of his compensation, subject to future performance-based vesting conditions set by the company.
How many performance-based restricted stock units were granted to the SAH CEO?
David Bruton Smith was granted 69,872 performance-based restricted stock units. Each unit represents a contingent right to receive one share of Class A Common Stock, cash of equivalent value, or a combination, depending on decisions by Sonic Automotive’s Compensation Committee after performance goals are met.
When do the new Sonic Automotive (SAH) performance-based RSUs vest?
The performance-based RSUs vest in three tranches if criteria are met: 25% on March 31, 2027, 30% on February 11, 2028, and 45% on February 11, 2029. Vesting depends on satisfying specified performance conditions over time for Sonic Automotive.
What does each Sonic Automotive (SAH) performance-based RSU entitle the holder to receive?
Each performance-based restricted stock unit gives a contingent right to receive one share of Class A Common Stock, its cash equivalent, or a combination. The form of settlement is determined at the option and sole discretion of Sonic Automotive’s Compensation Committee after performance requirements are satisfied.
How many Sonic Automotive (SAH) performance-based RSUs does the CEO hold after this grant?
After the reported grant, David Bruton Smith holds 109,648 performance-based restricted stock units directly. This total reflects his updated position in these incentive awards, which may convert into Class A Common Stock or cash upon meeting the specified performance and vesting conditions.
AI-generated analysis. How Rhea-AI works. Not financial advice.
