Form 4: Arthur J. Gallagher & Co. Director Acquires Notional Stock Units Through Deferral Plan

Director Christopher C. Miskel acquired notional stock units in Arthur J. Gallagher & Co. through the company's Director Deferral Plan.

Summary

• On March 1, 2025, Christopher C. Miskel, a director of Arthur J. Gallagher & Co., acquired 111.032 notional stock units.
• The acquisition was made through the company's Director Deferral Plan, where Miskel elected to defer his annual cash retainer into deferred share units.
• These units will be distributed in the form of Arthur J. Gallagher & Co. common stock in January 2036.
• Following the transaction, Miskel directly owns 1,976.805 shares of common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The director's participation in the deferral plan indicates confidence in the company's long-term prospects. It's a routine transaction, but positive for alignment of interests.

Positives

• The acquisition of notional stock units demonstrates the director's continued investment and confidence in the company's future.
• The Director Deferral Plan allows directors to align their interests with those of long-term shareholders.

Future Outlook

The notional stock units will be distributed as common stock in January 2036, indicating a long-term investment perspective.

Management Comments

• This acquisition resulted from the reporting person's election in a prior year (pursuant to the Company's Director Deferral Plan) to defer the reporting person's annual cash retainer, which the Company pays on a quarterly basis, into deferred share units that will be distributed in the form of the Company's common stock.

Industry Context

Director stock ownership is a common practice in publicly traded companies, aligning management's interests with those of shareholders. Deferral plans are often used to incentivize long-term performance.

Comparison to Industry Standards

• Director compensation packages often include stock options, restricted stock units, or deferred stock units to align their interests with shareholders.
• Companies like Marsh & McLennan Companies (MMC) and Aon plc (AON), which are competitors of Arthur J. Gallagher & Co., also utilize similar equity-based compensation plans for their directors.
• The specific terms of these plans, such as vesting schedules and deferral options, can vary significantly between companies.

Stakeholder Impact

• The transaction signals to shareholders that a director is invested in the company's long-term success.
• The Director Deferral Plan aligns the interests of the director with those of the shareholders.

Key Dates