Form 4: Arrow Electronics CEO Sean Kerins Reports Stock Transactions Following PSU Vesting
SEC Form 4 Filing
Sean Kerins, President and CEO of Arrow Electronics, reports acquisition and disposal of common stock related to the vesting of Performance Stock Units (PSUs) and tax withholding obligations.
Summary
- On February 12, 2025, Sean Kerins, the President and CEO of Arrow Electronics, reported transactions involving the company's common stock.
- These transactions include the acquisition of 7,205 shares and 4,006 shares of common stock upon the vesting and settlement of Performance Stock Units (PSUs) granted on February 16, 2022, and June 1, 2022, respectively, at a price of $106.82 per share.
- Kerins also disposed of 3,151 shares and 1,753 shares to satisfy tax withholding obligations related to the vesting of these PSUs, also at $106.82 per share.
- Following these transactions, Kerins beneficially owns 117,026 shares of Arrow Electronics common stock.
Sentiment
Score: 6
Explanation: The sentiment is neutral. The filing reflects routine transactions related to executive compensation. The vesting of PSUs suggests performance targets were met, which is mildly positive.
Positives
- The vesting of PSUs indicates that performance targets were met, which could be seen as a positive signal.
Industry Context
Form 4 filings are a routine part of corporate governance, providing transparency into the trading activities of company insiders. The vesting of PSUs is a common form of executive compensation.
Comparison to Industry Standards
- Executive compensation packages often include performance-based equity awards like PSUs to align management's interests with those of shareholders.
- The vesting of PSUs is contingent on achieving pre-defined performance metrics, which vary across companies and industries.
- Companies like Texas Instruments (TXN) and Avnet (AVT), which operate in similar sectors, also utilize equity-based compensation for their executives.
Stakeholder Impact
- The transactions have a minor impact on shareholders as they reflect routine executive compensation.
Key Dates
| Date | Description |
|---|---|
| February 16, 2022 | Date of PSU grant subject to a three-year performance period. |
| June 1, 2022 | Date of PSU grant in connection with Mr. Kerins' promotion to President and CEO. |
| February 12, 2025 | Date of the reported transactions (acquisition and disposal of shares). |
| February 13, 2025 | Date of signature on the Form 4 filing. |
Keywords
Form 4, Sean Kerins, Arrow Electronics, ARW, PSU, Performance Stock Units, Beneficial Ownership, Stock Transactions, Vesting, Tax Withholding
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