Encompass Health (EHC) EVP Darby John Patrick Exercises Options, Sells

What Happened

• Darby John Patrick, EVP, General Counsel & Secretary of Encompass Health Corp (EHC), exercised 4,858 stock options at $35.06 per share (total exercise cost $170,321) and then sold the 4,858 shares in an open-market transaction at $121.09 per share for proceeds of $588,255. The transactions were reported for the date 2026-08-31 and filed 2026-09-01.

Key Details

• Transaction date: August 31, 2026
• Exercise (M): 4,858 shares at $35.06 — total cost $170,321
• Sale (S): 4,858 shares at $121.09 — total proceeds $588,255
• A related derivative line shows 4,858 shares disposed at $0.00 (reflecting the option-to-share conversion)
• Shares owned after transaction: not disclosed in the provided filing details
• Footnote F1: option count and exercise price were adjusted under the 2016 Omnibus Performance Incentive Plan due to the spin-off distribution of Enhabit, Inc.
• Filing timeliness: Report filed the next day (Sep 1, 2026), which is within the normal Form 4 reporting window (not a late filing).

Context

• This was an exercise of options followed by an immediate sale of the acquired shares (a cashless or simultaneous exercise-and-sell pattern). That pattern converts option holdings to cash and is common for executives to realize gains or cover tax/exercise costs; it is a sale rather than a purchase signal.
• The footnote adjustment relates to a corporate spin-off and changes the reported option terms — not an additional trade.