Form 4: AAR Corp VP-CAO Increases Stake Through Stock Awards & Exercises
Insider Transaction Report
AAR Corp's VP-CAO & Controller, Eric Pachapa, reported exercising stock options and receiving new equity awards, resulting in a net increase in his beneficial ownership of common stock.
Summary
- Eric Pachapa, VP-CAO & Controller of AAR CORP, reported multiple transactions on January 22, 2026, including option exercises, stock sales, and new equity awards.
- Exercised 3,837 stock options at an exercise price of $18.94 per share and simultaneously sold 3,837 common shares at a weighted average price of $105.9365.
- Exercised an additional 1,146 stock options at an exercise price of $67.02 per share and simultaneously sold 1,146 common shares at a weighted average price of $105.9365.
- Received an award of 465 shares of restricted stock at a price of $0.
- Received an award of 1,395 shares of performance restricted stock at a price of $0.
- Received an award of 1,250 stock options with an exercise price of $107.74, which will vest in 1/3 annual installments beginning on January 22, 2027.
- Following these transactions, beneficial ownership of AAR CORP common stock increased to 22,245.32 shares.
Sentiment
Score: 6
Explanation: The sentiment is moderately positive due to a net increase in the insider's beneficial ownership of common stock through new equity awards, despite some sales for liquidity. The awards align management's interests with long-term company performance.
Positives
- The reporting person received new equity awards, including 465 restricted stock units, 1,395 performance restricted stock units, and 1,250 stock options, aligning executive interests with long-term shareholder value.
- A net increase in the insider's beneficial ownership of common stock to 22,245.32 shares after all reported transactions, indicating continued confidence in the company.
- Stock options were exercised at significantly lower prices ($18.94 and $67.02) compared to the sale price ($105.9365), demonstrating value realization from prior compensation.
Negatives
- The insider sold a total of 4,983 shares of common stock, potentially for personal liquidity or portfolio diversification.
Future Outlook
The filing details the vesting schedule for newly awarded stock options, with installments beginning on January 22, 2027, and continuing through January 22, 2029, indicating future equity incentives for the reporting person.
Industry Context
This Form 4 filing reflects routine insider equity transactions, common in publicly traded companies as part of executive compensation and personal financial management. It does not provide broader industry insights.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Power of Attorney Delegation | Eric Pachapa granted Power of Attorney to Katherine Kwiat, Jessica Garascia, Kim Loies, and Jamie Brown to execute and file Forms 3, 4, and 5 on his behalf. | 01/12/2023 | Streamlines the SEC filing process for the reporting person, ensuring timely compliance with Section 16(a) of the Securities Exchange Act of 1934. |
Stakeholder Impact
- Shareholders: The net increase in the insider's beneficial ownership may signal confidence in the company's future prospects.
- Employees: The filing demonstrates the ongoing use of equity compensation as part of executive remuneration practices.
Next Steps
- Continued vesting of newly awarded stock options on January 22, 2027, January 22, 2028, and January 22, 2029.
Key Dates
| Date | Description |
|---|---|
| 01/12/2023 | Date Power of Attorney was executed by Eric Pachapa. |
| 01/22/2026 | Date of all reported stock transactions (option exercises, sales, and awards). |
| 01/22/2027 | First vesting date for the newly awarded stock options. |
| 01/22/2028 | Second vesting date for the newly awarded stock options. |
| 01/22/2029 | Third vesting date for the newly awarded stock options. |
| 07/13/2030 | Expiration date for the first set of exercised stock options. |
| 07/22/2034 | Expiration date for the second set of exercised stock options. |
| 01/22/2036 | Expiration date for the newly awarded stock options. |
Keywords
AAR CORP, AIR, Form 4, Insider Trading, Stock Options, Restricted Stock, Performance Stock, Beneficial Ownership, Eric Pachapa, Equity Awards
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