General Dynamics (GD) CEO Phebe Novakovic Exercises Options, Sells Shares

What Happened
Phebe N. Novakovic, Chairman and CEO of General Dynamics, exercised 166,660 stock options on 2026-07-31 (exercise price $165.47; total exercise cost $27,577,230). Of those shares, 115,092 were surrendered/withheld to cover tax and exercise obligations (valued at $379.17 per share, ~$43.64M). The remaining 51,568 shares were sold in the open market on 2026-08-03 across multiple tranches for aggregate proceeds of about $19.73M. In short: options were exercised and effectively cashed out via withholding plus subsequent market sales.

Key Details

• Exercise date: 2026-07-31. Open-market sale dates: 2026-08-03.
• Options exercised: 166,660 shares at $165.47 ($27,577,230).
• Shares withheld/surrendered for taxes/exercise: 115,092 shares at $379.17 (value reported $43,639,434).
• Shares sold on market: 51,568 shares across four tranches (5,673 @ $381.17; 22,707 @ $382.17; 15,917 @ $383.09; 7,271 @ $383.85) for total proceeds ≈ $19,728,845.
• Combined value of shares surrendered + sold ≈ $63,368,279.
• Footnotes: sale-price ranges are provided (F1–F4); vesting info notes 50% of options became exercisable 03/04/2022 and remaining 50% on 03/04/2023 (F7). Footnotes also reference 401(k) and LLC/beneficiary holdings (F5–F6). The filing does not specify the total shares Novakovic owns after these transactions.
• Timing: Filing dated 2026-08-04 reporting transactions through 2026-07-31. The provided information does not indicate a late filing flag.

Context
This was an exercise of previously vested options followed by share withholding to satisfy tax/exercise obligations and the sale of the remaining shares — a common "cashless" exercise pattern that results in no new net shares retained from the exercised block. The surrender of shares to cover taxes is not a market sale that generated cash proceeds for the insider; the open-market transactions produced the ~$19.7M in reported proceeds. Footnotes state the reporting person will provide detailed per-share sale price breakdowns if requested.