Ellis Stephen A 4

What Happened

• Stephen A. Ellis, a director of Charles Schwab (SCHW), exercised stock options on 2026-03-24 and the filing shows acquisition of 9,765 shares and near-immediate disposition of those shares.
• Exercise details: acquired 1,899 shares @ $28.38 (cost $53,894) and 7,866 shares @ $28.96 (cost $227,799) — total acquired 9,765 shares for $281,693.
• Disposition details: the filing reports disposal of 1,899 shares at $1,899.00 (proceeds $3,606,201) and 7,866 shares at $7,866.00 (proceeds $61,873,956) — total reported proceeds $65,480,157. The transactions are coded as option exercises (transaction code M) and disposals of the resulting shares (reported as derivatives).

Key Details

• Transaction date: 2026-03-24; Form 4 filed 2026-03-25 (timely).
• Exercise (M) prices: $28.38 and $28.96 per share; reported disposal amounts shown as $1,899.00 and $7,866.00 per share in the filing (total proceeds $65,480,157).
• Shares acquired: 9,765; shares disposed: 9,765 (net change in beneficial ownership not disclosed in the filing).
• Footnotes:
  • F1: Some shares received on exercise were contributed to a revocable trust.
  • F2: Options were issued under the Directors' Deferred Compensation Plan II and vested immediately.
  • F3: References the company’s 2013 Stock Incentive Plan vesting schedule for grants (25%/25%/50% over three years).
• No late filing flag noted in the report.

Context

• This is an option exercise with immediate disposition (commonly a cashless exercise or immediate sale). The report shows both the low per-share exercise cost and large reported disposal proceeds; filings sometimes report derivative values differently depending on reporting conventions.
• For retail investors, exercise-plus-sale is typically a liquidity or tax-related action by the insider and does not by itself indicate a change in company outlook.