RLI (RLI) CFO awarded 40,000 stock options exercisable at $49.88 per share
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
RLI CORP reported that Chief Financial Officer Aaron Paul Diefenthaler received a grant of stock options. The award covers 40,000 stock options for RLI common stock at an exercise price of $49.88 per share.
These options were granted as compensation and are exercisable on a schedule where 20% of the total can be exercised beginning one year after the grant date and an additional 20% in each following year. After this grant, Diefenthaler holds 40,000 stock options directly, with the options scheduled to expire on May 14, 2034.
Positive
- None.
Negative
- None.
Insider Trade Summary
1 transaction reported
Mixed
1 txn
Insider
Diefenthaler Aaron Paul
Role
CHIEF FINANCIAL OFFICER
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Stock Option | 40,000 | $0.00 | -- |
Holdings After Transaction:
Stock Option — 40,000 shares (Direct, null)
Footnotes (1)
- [object Object]
Key Figures
Options granted: 40,000 options
Exercise price: $49.88 per share
Post-grant option holdings: 40,000 options
+2 more
5 metrics
Options granted
40,000 options
Grant of stock options to CFO on May 14, 2026
Exercise price
$49.88 per share
Strike price for the 40,000 stock options
Post-grant option holdings
40,000 options
Total stock options held by CFO after this grant
Expiration date
May 14, 2034
Expiry of granted stock options
Vesting schedule
20% per year
Starting one year from grant date, in five annual increments
Key Terms
Stock Option, exercise price, vesting schedule, expiration date
4 terms
Stock Option financial
"security_title: "Stock Option" with underlying security title "Common Stock""
A stock option is a contract that gives you the right to buy or sell a company's stock at a specific price within a certain time frame. People use them to potentially make money if the stock's price moves favorably or to protect against losses. It's like holding a coupon that can be used to buy or sell stock at a set price later on.
exercise price financial
"conversion_or_exercise_price: "49.8800" for the granted options"
The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.
vesting schedule financial
"20% of the aggregate number of shares granted may be exercised commencing one year from grant date"
A vesting schedule is a timeline that determines when someone gains full ownership of certain benefits, such as company stock or retirement contributions. Think of it like earning the right to own a gift gradually over time, rather than receiving it all at once. It matters to investors because it affects when they can fully access or sell these benefits, influencing their financial planning and decision-making.
expiration date financial
"expiration_date: "2034-05-14T00:00:00.000Z" for the stock options"
The expiration date is the deadline after which a financial contract, such as an option or a futures agreement, is no longer valid or can be exercised. It matters to investors because it determines the timeframe during which they can take action or benefit from the contract, similar to how a coupon or a food item has a limited period of usefulness. Once the expiration date passes, the contract loses its value or ability to be used.
FAQ
What transaction did RLI (RLI) disclose for its CFO in this Form 4?
RLI disclosed that CFO Aaron Paul Diefenthaler received a grant of 40,000 stock options. These options give him the right to buy RLI common shares at a fixed exercise price as part of his compensation package.
How many RLI (RLI) stock options were granted to the CFO and at what price?
The CFO received 40,000 stock options with an exercise price of $49.88 per share. This means he can purchase RLI common stock at $49.88 once the options vest, regardless of the market price at that time.
When do the newly granted RLI (RLI) stock options to the CFO vest?
The options vest in 20% increments starting one year after the grant date. Each year thereafter, another 20% becomes exercisable, spreading vesting across several years and encouraging longer-term alignment with company performance.
When do the RLI (RLI) stock options granted to the CFO expire?
The stock options expire on May 14, 2034. If the CFO does not exercise the options by that date, they will lapse and become worthless, so the value depends on RLI’s share price before expiration.