Form 4: AAR CORP VP-CAO & Controller Reports Routine Stock Vesting and Tax Withholding
Insider Transaction Report
AAR CORP's VP-CAO & Controller, Eric Pachapa, reported the withholding of 5,778 shares of common stock valued at $74.71 per share to cover tax obligations related to the vesting of performance-based and time-based restricted stock.
Summary
- Eric Pachapa, VP-CAO & Controller of AAR CORP (AIR), reported a transaction on July 31, 2025, involving the disposition of common stock.
- A total of 4,710 shares were withheld to satisfy tax obligations associated with the vesting of performance-based restricted stock.
- An additional 1,068 shares were withheld to satisfy tax obligations related to the vesting of time-based restricted stock.
- Both dispositions occurred at a price of $74.71 per share.
- Following these transactions, Eric Pachapa beneficially owns 25,385.32 shares of AAR CORP common stock.
Sentiment
Score: 5
Explanation: The filing reports a routine insider transaction related to equity compensation and tax withholding, which is a neutral event for the company's operational or financial performance.
Positives
- The vesting of restricted stock indicates that performance targets or time-based conditions were met, reflecting positively on the executive's tenure and potentially the company's performance.
- The transaction represents a standard and expected process for equity compensation, aligning executive interests with shareholder value through stock ownership.
Negatives
- The disposition of shares, while for tax purposes, results in a reduction of the insider's direct shareholding.
Future Outlook
No forward-looking statements or guidance are provided in this filing, as it pertains to a past insider transaction.
Industry Context
This filing is a routine insider transaction report, common across all publicly traded companies that utilize equity compensation plans. It does not provide specific insights into broader industry trends or competitive dynamics within the aerospace and defense sector where AAR CORP operates.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Authorization for SEC Filings | Eric Pachapa has granted a Power of Attorney to Katherine Kwiat, Jessica Garascia, Kim Loies, and Jamie Brown, enabling them to execute and file Forms 3, 4, and 5 on his behalf with the SEC. This ensures timely compliance with Section 16(a) of the Securities Exchange Act of 1934. | 01/12/2023 | This is a standard corporate governance practice that streamlines the process for insider trading compliance, ensuring that required filings are made accurately and on time, even in the absence of the reporting person. |
Stakeholder Impact
- Shareholders: The transaction is a routine event related to executive compensation and is unlikely to have a significant direct impact on shareholder value. It reflects the ongoing operation of the company's equity compensation plans.
- Employees: The vesting of restricted stock indicates that the company's equity compensation programs are functioning as intended, which can be a positive signal for employee retention and motivation.
Key Dates
| Date | Description |
|---|---|
| 01/12/2023 | Date Power of Attorney was executed by Eric Pachapa. |
| 07/31/2025 | Date of the reported stock transaction (vesting and tax withholding). |
| 08/01/2025 | Date the Form 4 was signed by Katherine Kwiat, attorney-in-fact for Eric Pachapa. |
Keywords
AAR CORP, AIR, Form 4, insider transaction, stock vesting, restricted stock, equity compensation, tax withholding, corporate officer, VP-CAO & Controller
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