Form 4: Avery Dennison HR Chief Reports Stock Transactions

Avery Dennison's SVP & Chief HR Officer, Deena Baker-Nel, reported multiple acquisitions and dispositions of common stock and derivative securities on March 1, 2026.

Summary

• Deena Baker-Nel, SVP & Chief HR Officer of Avery Dennison Corp, reported several transactions involving common stock and derivative securities on March 1, 2026.
• Acquired a total of 2,565 shares of common stock through the exercise/vesting of various MSU and PU awards at a price of $194.78 per share.
• Disposed of a total of 787 shares of common stock at $194.78 per share, likely for tax withholding purposes related to the vesting of awards.
• Received new grants of 2,119 Restricted Stock Units (RSUs) and 3,063 Performance Units (PUs) on March 1, 2026.
• RSUs vest 25% annually over four years, starting March 1, 2027, and expire March 1, 2030.
• PUs vest at the end of fiscal year 2028, contingent on performance objectives, and expire March 1, 2029.
• Vesting of 2022, 2023, 2024, and 2025 MSU awards occurred at 92%, 96%, 92%, and 94% of target, respectively, based on absolute total stockholder return.
• Vesting of the 2023 PU award occurred at 56% of target, based on cumulative economic value added (0% of target) and relative total stockholder return (112% of target).
• Following these transactions, Baker-Nel directly beneficially owns 7,125 shares of common stock and indirectly owns 1,721.9768 shares through a Savings Plan.
• Beneficially owns 2,119 2026 RSU Awards, 3,063 2026 PU Awards, 357 2023 MSU Awards, 661 2024 MSU Awards, and 2,021 2025 MSU Awards.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive filing, reflecting routine executive compensation activities including the vesting of performance-based awards and new equity grants, which align management interests with long-term shareholder value, despite some shares being disposed for tax purposes.

Positives

• Acquisition of 2,565 shares of common stock through the exercise/vesting of various awards, increasing direct ownership.
• Grant of new 2,119 Restricted Stock Units (RSUs) and 3,063 Performance Units (PUs) indicates continued long-term incentive alignment with company performance.
• Vesting of MSU awards at 92%, 96%, 92%, and 94% of target, and PU awards at 56% of target, demonstrates achievement of performance objectives, albeit some below 100%.

Negatives

• Disposition of 787 shares of common stock, likely for tax withholding, reduces the immediate net increase in direct share ownership from vested awards.

Future Outlook

The filing details future vesting schedules for newly granted Restricted Stock Units (RSUs) and Performance Units (PUs), with RSUs vesting annually through March 1, 2030, and PUs vesting at the end of fiscal year 2028 based on performance objectives.

Industry Context

StockSavvy.ai notes that routine insider transactions, such as the vesting of equity awards and subsequent tax-related dispositions, are common occurrences for executives in publicly traded companies. These transactions reflect the standard compensation structure designed to align management incentives with shareholder value over the long term. The grants of new RSUs and PUs further reinforce this alignment, tying future compensation to company performance metrics.

Stakeholder Impact

• Shareholders: The vesting of performance-based awards and new equity grants align the interests of the SVP & Chief HR Officer with shareholders, as a portion of her compensation is tied to the company's stock performance and other metrics.
• Employees: As SVP & Chief HR Officer, Deena Baker-Nel's compensation structure, including equity awards, sets a precedent for executive incentives and may influence broader compensation philosophies within the company.

Next Steps

• Continued vesting of 2026 RSU Award, with 25% vesting annually on March 1st, starting March 1, 2027.
• Vesting of 2026 PU Award at the end of fiscal year 2028, contingent on performance objectives determined by the Compensation Committee in February 2029.

Key Dates

Keywords

Avery Dennison, AVY, Insider Transaction, Form 4, Stock Ownership, Restricted Stock Units, Performance Units, Management Stock Units, Executive Compensation, Deena Baker-Nel