Form 4: Emerson CEO's Tax-Related Stock Withholding

Emerson Electric Co.'s President and CEO, Surendralal Lanca Karsanbhai, reported a disposition of 10,016 shares of common stock for tax withholding purposes.

Summary

• Surendralal Lanca Karsanbhai, President & CEO and Director of Emerson Electric Co. (EMR), reported a transaction on November 6, 2025.
• The transaction involved the disposition of 10,016 shares of Common Stock.
• These shares were withheld for required minimum taxes upon the vesting of a previously reported stock grant under a shareholder-approved benefit plan, exempt pursuant to Rule 16b-3.
• The fair market value of the shares on the date of withholding was $132.705 per share, totaling approximately $1,329,399.48.
• Following this transaction, Karsanbhai directly beneficially owns 308,877 shares of Common Stock.
• Indirect beneficial ownership includes 453.26 shares in a Custodian Account for Daughter, 453.26 shares in a Custodian Account for Son, 164,957.0331 shares by Trust, 660.54 shares in a 401(k) plan, 49.434 shares in a 401(k) excess plan, and 2,485.557 shares in a 401(k) excess plan II.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive. While there's a reduction in direct ownership, it's due to a non-discretionary tax withholding upon the vesting of a stock grant, which implies the executive met conditions for the award. This is a routine event and not indicative of negative sentiment from the insider.

Positives

• The transaction represents the vesting of a previously granted stock award, indicating that performance or time-based conditions were met, which is generally a positive sign for executive compensation and retention.
• The disposition was for tax withholding purposes, not a discretionary sale by the insider, suggesting no immediate change in investment sentiment from the executive.

Negatives

• The direct beneficial ownership of Common Stock by the President & CEO decreased by 10,016 shares as a result of the tax withholding.

Future Outlook

This Form 4 filing is a report of a past transaction and does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

This insider transaction is a routine event in executive compensation, where vested stock awards trigger tax obligations that are often met by withholding a portion of the shares. It does not reflect a strategic shift or specific industry trend, but rather the standard operation of an executive compensation plan within a publicly traded company.

Stakeholder Impact

• Shareholders: The transaction is a routine tax-related disposition and is unlikely to have a significant impact on shareholder sentiment or the company's stock price. It confirms the ongoing operation of executive compensation plans.
• Employees: No direct impact on employees is indicated by this filing.

Key Dates

Recommendation

This Form 4 reports a routine, non-discretionary tax withholding transaction by the CEO upon the vesting of a stock grant. Such transactions are common in executive compensation and do not typically signal a change in the company's fundamentals or the executive's outlook. Therefore, it does not provide new information that would warrant a change from a 'hold' recommendation based solely on this filing.

Keywords

Emerson Electric, EMR, Surendralal Lanca Karsanbhai, Insider Transaction, Form 4, Stock Grant, Tax Withholding, CEO Stock, Executive Compensation