Form 4: Avery Dennison SVP & CIO Nicholas Colisto Reports Stock Transactions
SEC Form 4
Nicholas Colisto, SVP & CIO of Avery Dennison Corp, reports multiple transactions involving common stock and derivative securities, including the vesting of market-leveraged stock units (MSUs) and performance units (PUs).
Summary
- On March 1, 2024, Nicholas Colisto, SVP & CIO of Avery Dennison Corp, reported several transactions.
- These transactions involved the acquisition and disposal of common stock related to the vesting of market-leveraged stock units (MSUs) and performance units (PUs).
- Colisto acquired shares through the vesting of 2020, 2021, 2022 and 2023 MSU awards and 2021 PU awards.
- Correspondingly, shares were disposed of to cover tax obligations associated with the vesting of these awards.
- Following these transactions, Colisto directly owns 10,805 shares of Avery Dennison common stock.
- Colisto also holds derivative securities including 1,055 MSUs from the 2024 MSU award and 1,204 PUs from the 2024 PU award, as well as 241 MSUs from the 2021 MSU award, 752 MSUs from the 2022 MSU award, and 1,031 MSUs from the 2023 MSU award.
Sentiment
Score: 6
Explanation: The sentiment is neutral as the document primarily reports routine stock transactions related to executive compensation. The vesting of awards suggests the achievement of performance targets, which is mildly positive.
Positives
- The vesting of MSUs and PUs indicates that performance targets were met, which is a positive sign for the company's performance.
- Colisto's continued direct ownership of 10,805 shares demonstrates his ongoing investment in the company.
Industry Context
This filing is a routine disclosure of insider transactions, which are common for executives receiving equity compensation. It provides transparency into the executive's holdings and transactions in the company's stock.
Comparison to Industry Standards
- Equity compensation is a standard practice among publicly traded companies to align executive interests with shareholder value.
- The vesting schedules and performance metrics (total stockholder return, economic value added) are typical components of executive compensation plans.
- Companies like 3M, CCL Industries, and Amcor also utilize similar equity-based compensation strategies for their executives.
Stakeholder Impact
- The transactions have a minor impact on shareholders as they reflect the normal course of executive compensation.
- Employees may view the vesting of performance-based awards as a positive sign of company performance.
Key Dates
| Date | Description |
|---|---|
| 02/27/2021 | Date of 2020 MSU Award |
| 03/01/2021 | Date of 2021 MSU Award |
| 03/01/2022 | Date of 2022 MSU Award |
| 03/01/2023 | Date of 2023 MSU Award |
| 03/01/2024 | Date of earliest transaction, vesting of MSUs and PUs |
| 03/01/2025 | Expiration date of 2021 MSU Award |
| 03/01/2026 | Expiration date of 2022 MSU Award |
| 03/01/2027 | Expiration date of 2023 MSU Award and 2024 PU Award |
| 03/01/2028 | Expiration date of 2024 MSU Award |
| 03/05/2024 | Date of signature |
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