Form 4: AJG Officer Acquires Phantom Stock Award

Arthur J. Gallagher & Co. Vice President Mark H. Bloom reported the acquisition of 1,541.782 phantom stock units as part of a deferred compensation plan.

Summary

• Mark H. Bloom, Vice President of Arthur J. Gallagher & Co. (AJG), acquired 1,541.782 shares of phantom stock.
• The transaction occurred on March 4, 2026.
• Each phantom stock share represents a right to receive one share of Gallagher common stock.
• These awards are part of the Company's Age 62 Plan, a nonqualified deferred compensation plan.
• Participants in the Age 62 Plan vest in these awards upon attaining age 62, or after a one-year period if they have already attained age 61.
• Following this transaction, Mark H. Bloom beneficially owns 7,255.745 shares of phantom stock.
• The phantom stock was deemed invested in Company common stock at a price of $227.01 per share at the election of the reporting person.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive, routine event, reflecting ongoing executive compensation and alignment of interests, which is generally favorable for corporate governance and long-term stability.

Positives

• The acquisition of phantom stock by a Vice President aligns management's long-term interests with those of shareholders.
• The transaction is part of a structured, nonqualified deferred compensation plan, indicating a stable and pre-planned executive incentive program.

Future Outlook

The phantom stock awards will vest when the reporting person attains age 62, or after a one-year period if they have already attained age 61, indicating a future conversion to common stock based on these conditions.

Industry Context

StockSavvy.ai notes that deferred compensation plans like the Age 62 Plan are common in the insurance brokerage industry to retain key executives and align their long-term interests with shareholders, fostering stability in leadership.

Comparison to Industry Standards

• StockSavvy.ai notes that nonqualified deferred compensation plans, particularly those tied to equity, are standard practice across large financial services and insurance firms, comparable to plans offered by industry peers such as Marsh & McLennan (MMC) or Aon plc (AON) to incentivize and retain senior management.

Related Party Transactions

• The acquisition of phantom stock by Vice President Mark H. Bloom from Arthur J. Gallagher & Co. under the Age 62 Plan constitutes a related party transaction.

Stakeholder Impact

• Shareholders: The award aligns the interests of a key executive with shareholders, potentially encouraging long-term value creation.
• Employees (executives): Provides a structured deferred compensation benefit, aiding in executive retention and motivation.

Next Steps

• The phantom stock awards will vest upon the reporting person attaining age 62, or after a one-year period for participants who have attained age 61.

Key Dates

Recommendation

This Form 4 reports a routine insider acquisition of phantom stock as part of a deferred compensation plan, which is a standard practice for executive retention and alignment. It does not present new information that would warrant a change in investment thesis, thus a 'hold' recommendation is appropriate.

Keywords

Arthur J. Gallagher & Co., AJG, Mark H. Bloom, Phantom Stock, Insider Transaction, Form 4, Deferred Compensation, Executive Compensation, Equity Award