Form 4: Applied Industrial VP Vasquez Reports Equity Transactions

Applied Industrial Technologies VP Jason W. Vasquez reported acquisitions of restricted stock units and performance shares, alongside a disposition for tax withholding, and new stock appreciation rights.

Summary

• Jason W. Vasquez, VP-Sales & Marketing-USSC for Applied Industrial Technologies Inc. (AIT), reported several transactions involving common stock and derivative securities.
• On August 12, 2025, Vasquez acquired 473 shares of common stock through restricted stock units (RSUs), which are set to vest three years from the grant date and will be settled in shares.
• An additional 1,465 performance shares were 'banked' on August 12, 2025, resulting from 2025 performance. These shares will vest at the end of a three-year program and be settled in common stock.
• To satisfy tax withholding obligations on the vesting of performance shares, 1,269 shares of common stock were disposed of at a price of $270.68 per share on August 12, 2025.
• Following these reported transactions, Vasquez directly beneficially owns 21,957 shares of common stock and indirectly owns 866.565 shares through a Retirement Savings Plan.
• Vasquez also acquired 1,453 stock appreciation rights (SARs) on August 12, 2025, with an exercise price of $270.68. These SARs will become exercisable in annual increments of 25% commencing one year after the grant date (August 12, 2026) and have an expiration date of August 12, 2035.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive, reflecting routine executive compensation and equity awards tied to performance, which are generally viewed as positive for executive retention and alignment, despite a disposition for tax purposes.

Positives

• Acquisition of 473 restricted stock units (RSUs) indicates ongoing equity compensation and alignment with shareholder interests.
• The 'banking' of 1,465 performance shares reflects positive 2025 company performance, leading to executive compensation.
• Acquisition of 1,453 stock appreciation rights (SARs) provides future upside potential tied to stock price performance.

Negatives

• Disposition of 1,269 shares of common stock at $270.68 was made to cover tax withholding obligations, reducing direct beneficial ownership.

Future Outlook

Restricted stock units are scheduled to vest three years from the grant date. Performance shares, 'banked' due to 2025 performance, will vest at the end of a three-year program. Stock appreciation rights will become exercisable in annual 25% increments starting one year after the grant date, with a final expiration in 2035.

Industry Context

This filing represents a routine disclosure of executive compensation and equity transactions, common across publicly traded companies, reflecting the structure of long-term incentive plans designed to align management interests with shareholder value.

Stakeholder Impact

• Shareholders: The transactions reflect ongoing executive compensation practices, aligning management incentives with long-term company performance. The disposition for tax purposes is a routine event and does not indicate a change in management's confidence.
• Employees: The compensation structure for a senior executive may set a precedent or reflect the broader compensation philosophy within the company.

Next Steps

• Vesting of 473 restricted stock units three years from the grant date.
• Vesting of 1,465 performance shares at the end of the three-year program.
• Stock appreciation rights becoming exercisable in 25% annual increments starting August 12, 2026.

Key Dates

Keywords

AIT, Applied Industrial Technologies, Form 4, Insider Transaction, Executive Compensation, Restricted Stock Units, Performance Shares, Stock Appreciation Rights, Equity Awards