Form 4: Emerson Electric Executive Reports Routine Stock Withholding

Emerson Electric's Senior VP, Secretary & Chief Legal Officer, Michael Tang, reported the withholding of shares for tax obligations related to vested restricted stock and units.

Summary

• Michael Tang, Senior Vice President, Secretary & Chief Legal Officer at Emerson Electric Co., reported transactions on January 2, 2026.
• 4,571 shares of Common Stock were withheld for required minimum taxes upon the vesting of a previously reported restricted stock grant.
• An additional 2,154 shares of Common Stock were withheld for required minimum taxes upon the vesting of a previously reported restricted stock unit grant.
• The fair market value on the date of withholding for both transactions was $134.535 per share.
• Following these transactions, Michael Tang beneficially owns 31,439 shares of Common Stock (related to the first withholding) and 29,285 shares of Common Stock (related to the second withholding).
• These transactions were made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities of the issuer, intended to satisfy Rule 10b5-1(c).

Sentiment

Score: 5

Explanation: Neutral. This is a routine, non-discretionary transaction for tax purposes related to executive compensation, not indicative of positive or negative company performance or a change in executive sentiment towards the company.

Positives

• Michael Tang continues to hold a significant number of shares (31,439 and 29,285 shares respectively) after the tax withholdings, indicating ongoing alignment with shareholder interests.
• The transactions were conducted under a shareholder-approved benefit plan, reinforcing adherence to established corporate governance practices.

Negatives

• The reduction in directly held shares due to tax withholding, though routine, slightly decreases the executive's direct beneficial ownership.

Future Outlook

NA

Industry Context

This routine insider transaction reflects standard executive compensation practices within the industrial technology sector, where equity awards like restricted stock and units are common, and tax withholdings upon vesting are a typical occurrence.

Comparison to Industry Standards

• The practice of withholding shares for tax obligations upon the vesting of equity awards is a standard industry practice for executive compensation across various sectors, including industrial technology companies like Emerson Electric. This mechanism is widely used to cover statutory tax liabilities without requiring the executive to sell shares on the open market, thereby often aligning executive interests with long-term shareholder value. No specific comparable companies or projects are relevant for this routine transaction.

Corporate Governance

Stakeholder Impact

• Shareholders: Minimal direct impact as this is a routine tax withholding, not a discretionary sale. It reflects the normal operation of executive compensation plans.
• Employees: No direct impact beyond the executive involved.

Key Dates

Keywords

Emerson Electric, EMR, Michael Tang, Form 4, Insider Transaction, Stock Withholding, Restricted Stock, Restricted Stock Units, Executive Compensation, Beneficial Ownership