Form 4: Avery Dennison Director David Flitman Receives RSU Grant

Avery Dennison Corporation's new director, David E. Flitman, was granted 765 restricted stock units (RSUs) as part of his compensation.

Summary

• David E. Flitman, a new Director of Avery Dennison Corp (AVY), was granted 765 Restricted Stock Units (RSUs).
• The grant date for these RSUs was July 23, 2025.
• Each RSU represents a contingent right to receive one share of Avery Dennison common stock.
• The RSUs are scheduled to cliff-vest on July 23, 2026, which is the first anniversary of the grant date.
• Following this transaction, David E. Flitman beneficially owns 765 derivative securities directly.

Sentiment

Score: 7

Explanation: The filing reports a routine equity grant to a new director, which is a positive for aligning management interests with shareholders and a standard compensation practice. It contains no negative or unexpected information.

Positives

• The grant of Restricted Stock Units (RSUs) aligns the new director's interests with those of shareholders, as the value of the RSUs is tied to the company's stock performance.
• The RSU grant is a standard component of compensation for new directors, indicating a structured approach to executive and board remuneration.

Negatives

• No specific negative information is disclosed in this Form 4 filing.

Risks

• The value of the granted Restricted Stock Units (RSUs) is subject to market fluctuations of Avery Dennison's common stock.
• The RSUs are subject to a one-year cliff-vesting period, meaning the director must remain with the company until July 23, 2026, to receive the shares.

Future Outlook

The filing indicates that the 765 Restricted Stock Units granted to David E. Flitman are scheduled to cliff-vest on July 23, 2026, contingent upon his continued service.

Industry Context

The grant of Restricted Stock Units (RSUs) to a new director is a common practice in corporate governance across various industries, including manufacturing and materials, which Avery Dennison operates in. This method of compensation is widely used to attract and retain qualified board members by aligning their long-term interests with shareholder value.

Comparison to Industry Standards

• The grant of equity compensation, specifically Restricted Stock Units (RSUs), to new directors is a standard practice across publicly traded companies, including peers in the specialty chemicals and materials sector such as 3M Company (MMM) or DuPont de Nemours, Inc. (DD).
• The cliff-vesting schedule, where RSUs vest entirely on a specific future date (one year from grant), is a common vesting structure for director equity awards, similar to practices observed at companies like WestRock Company (WRK) or Packaging Corporation of America (PKG) for their board members.
• The specific number of RSUs (765) would typically be determined based on a target dollar value for director compensation, which varies by company size, industry, and board responsibilities, and is generally benchmarked against peer groups.

Management Changes

Stakeholder Impact

• Shareholders: The grant of RSUs to a new director aligns his interests with shareholders by tying a portion of his compensation to the company's stock performance.
• Employees: No direct impact on general employees is indicated.
• Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated.

Next Steps

• The 765 Restricted Stock Units (RSUs) granted to David E. Flitman are scheduled to cliff-vest on July 23, 2026.

Key Dates

Recommendation

This Form 4 filing details a routine equity grant to a new director, which is a standard compensation practice and does not provide new material information that would significantly alter the investment thesis for Avery Dennison. It's a neutral event for the stock price, hence a 'hold' recommendation is appropriate as it doesn't present a compelling reason to buy or sell based solely on this filing.

Keywords

Avery Dennison, AVY, David E. Flitman, Form 4, SEC filing, insider transaction, restricted stock units, RSUs, director compensation, equity grant