Burns Mark Lagrand 4

What Happened

• Mark L. Burns, Executive Vice President of General Dynamics (GD), exercised stock options on May 11–12, 2026, to acquire a total of 72,710 shares (36,230 @ $165.47 and 36,480 @ $168.56) for an aggregate exercise cost of $12,144,047. He then sold the same total of 72,710 shares in open‑market transactions on May 11–12, 2026 for aggregate gross proceeds of approximately $25,040,696 (individual sale lots at ~$342.8–$346.0). The filing also reports the corresponding derivative interests (options) as disposed ($0 value) in connection with the exercises.
• This sequence — exercising vested options and selling the acquired shares — is effectively a cashless exercise followed by immediate disposition (sale). The transactions resulted in gross proceeds roughly $12.9M greater than the exercise cost before taxes and fees.

Key Details

• Transaction dates: May 11, 2026 and May 12, 2026.
• Exercises: 36,230 shares @ $165.47 (cost $5,994,978); 36,480 shares @ $168.56 (cost $6,149,069) — total 72,710 shares, $12,144,047 cost.
• Sales: total 72,710 shares in multiple lots with proceeds totaling ~$25,040,696 (individual reported sale amounts: $2,601,760; $9,842,881; $11,708,747; $887,308). Footnotes indicate sale price ranges by lot (approx. $342.22–$346.02) and that per‑price breakdowns are available on request (F1–F4).
• Shares owned after transaction: not disclosed in the provided excerpt of the filing.
• Other footnotes: F5 notes 401(k) plan activity since the last report; F6–F7 reference prior vesting schedules for the options exercised. No late filing is indicated (filed 2026‑05‑13 for trades on 5/11–5/12).

Context

• For retail investors: exercising options and immediately selling the resulting shares is common for executives to capture the value of vested options and cover exercise/tax costs; it does not necessarily signal a long‑term view change. Derivative reporting (M code) reflects the exercise of options and the cessation of the derivative instrument.
• The filing is factual disclosure of insider activity; it does not explain motivation.