Form 4: Avery Dennison SVP & CIO Reports Equity Transactions

Avery Dennison's SVP & CIO, Nicholas Colisto, reported routine acquisitions and dispositions of common stock related to equity award vesting.

Summary

• Nicholas Colisto, SVP & CIO of Avery Dennison Corp, reported multiple transactions involving common stock on March 1, 2026.
• Acquired a total of 2,182 shares of common stock through the exercise/conversion of derivative securities (MSU and PU awards) at a price of $194.78 per share.
• Disposed of a total of 558 shares of common stock at $194.78 per share to cover tax liabilities associated with the vesting of equity awards.
• Beneficial ownership of common stock increased from 9,758 shares to 11,012 shares following these transactions.
• Received new grants of 1,462 Restricted Stock Units (RSUs) and 2,114 Performance Units (PUs) on March 1, 2026.
• Vesting of 2022, 2023, 2024, and 2025 Market Share Unit (MSU) awards occurred at 92%, 96%, 92%, and 94% of target, respectively, based on absolute total stockholder return.
• Vesting of 2023 Performance Unit (PU) awards occurred at 56% of target, based 50% on cumulative economic value added of 0% of target and 50% on relative total stockholder return of 112% of target.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive signal, reflecting ongoing executive compensation and retention through new equity grants, alongside the successful vesting of most prior awards at strong percentages, indicating past performance alignment.

Positives

• New grants of 1,462 Restricted Stock Units (RSUs) and 2,114 Performance Units (PUs) demonstrate continued executive incentive alignment.
• Market Share Unit (MSU) awards from 2022, 2023, 2024, and 2025 vested at strong percentages (92%, 96%, 92%, 94% of target), indicating favorable absolute total stockholder return performance.
• Net increase in beneficial ownership of common stock from 9,758 to 11,012 shares, showing continued executive stake in the company.

Negatives

• The 2023 Performance Unit (PU) award vested at 56% of target, which is significantly below 100%, primarily due to 0% of target for cumulative economic value added.
• A total of 558 shares were disposed of to cover tax liabilities, representing a reduction in direct holdings.

Future Outlook

The reporting person received new grants of Restricted Stock Units (RSUs) and Performance Units (PUs) in 2026, which are scheduled to vest over future periods, indicating continued long-term incentive alignment.

Industry Context

StockSavvy.ai notes that these transactions represent routine executive compensation activities, including the vesting of previously granted equity awards and the issuance of new long-term incentives. Such filings are common across publicly traded companies as part of their executive remuneration structures, aiming to align management interests with shareholder value creation.

Stakeholder Impact

• Shareholders: Provides transparency into executive compensation and stock ownership, indicating management's vested interest in the company's long-term performance.
• Employees: Reflects the company's executive compensation structure and performance-based incentives.

Next Steps

• Vesting of 2026 RSU Award: 25% on each of the first, second, third, and fourth anniversaries of the March 1, 2026 grant date.
• Vesting of 2026 PU Award: At the end of fiscal year 2028, contingent on certain performance objectives being met, as determined by the Compensation Committee in February 2029.

Key Dates

Recommendation

The filing details routine executive equity transactions, including vesting of performance-based awards and new grants. While it confirms ongoing executive alignment and past performance, it does not introduce new fundamental information that would significantly alter the company's valuation or warrant a change in investment strategy. Investors should continue to monitor broader company performance and market conditions.

Keywords

Avery Dennison, AVY, Insider Trading, Executive Compensation, Stock Awards, RSU, MSU, PU, Nicholas Colisto, Equity Transactions