Form 4: Avery Dennison CEO Stander Boosts Stake, Receives New Equity Awards

Avery Dennison's President & CEO, Deon Stander, increased his direct common stock holdings by 6,383 shares and received new RSU and performance unit awards on March 1, 2026.

Summary

• Deon Stander, President & CEO and Director of Avery Dennison Corp (AVY), reported multiple transactions on March 1, 2026.
• Stander acquired a gross total of 14,193 shares of common stock through the vesting of various derivative awards.
• Concurrently, 5,986 shares were disposed of to cover tax liabilities or exercise prices, resulting in a net increase of 8,207 shares from the vesting events.
• His direct beneficial ownership of common stock increased from 66,968 shares to 73,351 shares following these transactions.
• Stander was granted new 2026 RSU Awards totaling 16,622 shares, vesting 25% annually over four years starting March 1, 2027.
• He also received new 2026 Performance Unit (PU) Awards for 24,033 shares, vesting at the end of fiscal year 2028 based on performance objectives.
• Several previously granted awards vested: 1,824 shares from 2022 MSUs (92% of target), 1,382 shares from 2023 MSUs (96% of target), 3,033 shares from 2024 MSUs (92% of target), 4,854 shares from 2025 MSUs (94% of target), and 3,100 shares from 2023 PUs (56% of target).

Sentiment

Score: 7

Explanation: StockSavvy.ai views this filing positively as it demonstrates continued executive alignment through increased direct share ownership and new long-term incentive grants, despite some shares being sold for tax purposes.

Positives

• Deon Stander's direct beneficial ownership of common stock increased by 6,383 shares, indicating continued alignment with shareholder interests.
• The vesting of multiple tranches of MSU and PU awards suggests the company met various performance targets, including absolute total stockholder return and relative total stockholder return.
• New RSU and PU awards provide long-term incentives for the CEO, aligning future performance with executive compensation.

Negatives

• A significant portion of vested shares (5,986 shares) were disposed of to cover tax liabilities, which is a common practice but reduces the net increase in direct holdings.
• The 2023 PU Award vested at 56% of target, with the cumulative economic value added component achieving 0% of target, indicating underperformance in that specific metric.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that routine Form 4 filings, such as this one, are common for executives receiving and vesting equity compensation. The mix of new awards and vesting of prior grants reflects standard long-term incentive structures designed to align executive interests with shareholder value creation, a practice prevalent across the materials and packaging industry where Avery Dennison operates.

Stakeholder Impact

• Shareholders: Increased direct ownership by the CEO generally signals confidence and aligns executive interests with shareholder value. New equity awards provide long-term incentives for management to drive company performance.

Next Steps

• Future vesting of 2026 RSU Awards, with 25% vesting annually starting March 1, 2027.
• Vesting of 2026 Performance Unit Awards at the end of fiscal year 2028, contingent on performance objectives.
• Future vesting of remaining 2023, 2024, and 2025 MSU awards.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation activities, including the vesting of equity awards and the grant of new long-term incentives. While the CEO's direct ownership increased, these transactions are standard and do not typically provide new fundamental information to warrant a change in investment recommendation. The filing reinforces executive alignment but does not present new catalysts for significant price movement.

Keywords

Avery Dennison, AVY, Deon Stander, Insider Trading, Form 4, Equity Awards, RSU, MSU, Performance Units, CEO Stock, Executive Compensation