Wat Joey 4

What Happened

• Joey Wat, CEO of Yum China (YUMC), converted/exercised vested derivative awards on Feb 10, 2026 and subsequently disposed of some shares to cover taxes and in an open-market sale. He converted a total of 41,901 shares (6,861 + 35,040) at $0.00 per share (conversion/exercise).
• Of those shares, 4,369 were surrendered/withheld to satisfy tax withholding obligations (1,180 shares valued at $67,402 and 3,189 shares valued at $182,156). On Feb 11, Wat sold 4,613 shares in the open market at $57.01 for approximately $262,987.
• Net newly-held shares from the conversion = 41,901 converted − 4,369 withheld − 4,613 sold = 32,919 shares retained. The total value associated with disposed shares (withheld + market sale) is about $512,545, though only the open-market sale generated cash proceeds (~$262,987).

Key Details

• Transaction dates/prices: Feb 10, 2026 conversions at $0.00; tax-withholding dispositions at $57.12 (1,180 and 3,189 shares); Feb 11, 2026 open-market sale of 4,613 shares at $57.01.
• Shares withheld for taxes: 4,369 shares (value ≈ $249,558). Open-market sale: 4,613 shares (proceeds ≈ $262,987).
• Shares acquired via conversion: 41,901 shares. Net retained after withholding/sale ≈ 32,919 shares.
• Footnotes from the filing: conversion is one-for-one (F1); some awards vest 25% per year beginning 2/10/2022 (F2); one grant has no expiration (F3); another vests 1/3 per year beginning 2/10/2025 (F4).
• Filing: Form 4 filed Feb 12, 2026 reporting transactions on Feb 10–11, 2026 (appears to be filed within the normal 2-business-day window).
• Transaction codes: M = exercise/conversion of derivative; F = shares withheld/paid to cover tax liability; S = open-market sale.

Context

• This was primarily a conversion of vested derivative awards (exercise/conversion recorded at $0.00) followed by share withholding for taxes and a small open-market sale — a common pattern often described as a cashless exercise/settlement where some shares are used to satisfy tax obligations and some may be sold.
• Tax-withholding dispositions are administrative and don’t necessarily reflect a voluntary sell decision; the only open-market sale reported was 4,613 shares for ≈$263K.
• The filing is by an executive (CEO), not a 10% owner. The filing is factual; it does not indicate insider intent or future company performance.