Form 4: Erie Indemnity Director Boosts Stake with Deferred Compensation

Erie Indemnity Director Charles Scott Hartz acquired additional Class A common stock through deferred compensation share credits, increasing his beneficial ownership.

Summary

• Director Charles Scott Hartz reported changes in beneficial ownership of Erie Indemnity Co. (ERIE).
• Acquired 39.474 Directors' Deferred Compensation Share Credits on October 31, 2025.
• These Share Credits represent the right to receive an equivalent number of Class A common stock shares upon the end of his service as a Director.
• The price of the derivative security (share credits) was $292.64 per unit.
• Following this transaction, Mr. Hartz directly owns 19,019.884 derivative securities (share credits).
• He also indirectly owns 1,097.427 shares of Class A Common Stock through the C. Scott Hartz 2005 Delaware Trust.
• The transaction was made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 7

Explanation: The acquisition of deferred compensation share credits by a director is a positive indicator of continued alignment with the company's long-term performance and is a routine part of executive compensation.

Positives

• Director Charles Scott Hartz increased his beneficial ownership through the acquisition of 39.474 Directors' Deferred Compensation Share Credits.
• Participation in the deferred compensation plan aligns the director's interests with long-term shareholder value.
• The transaction was executed under a Rule 10b5-1(c) plan, indicating a pre-arranged, non-discretionary transaction.

Future Outlook

The acquisition of deferred compensation share credits indicates a long-term commitment by the director, with the actual shares to be received upon the cessation of his service.

Industry Context

This is a routine insider transaction for a director of an insurance company, reflecting standard executive compensation practices that often include deferred equity awards to align long-term interests.

Comparison to Industry Standards

• Deferred compensation plans, particularly those involving equity, are a common practice among publicly traded companies, including those in the insurance sector, to retain key personnel and align their interests with long-term company performance.
• Many companies, such as Chubb Limited or Travelers Companies, utilize similar equity-based compensation structures for their directors and executives.

Related Party Transactions

• Indirect beneficial ownership of 1,097.427 Class A Common Stock shares through the C. Scott Hartz 2005 Delaware Trust.

Stakeholder Impact

• Shareholders: Indicates continued alignment of a key director's interests with long-term shareholder value through equity-based compensation.

Next Steps

• The reporting individual will receive an equivalent number of Erie Indemnity Company Class A common stock shares when their service as a Director of the Company ends.

Key Dates

Recommendation

This Form 4 filing reports a routine acquisition of deferred compensation share credits by a director, which is a standard part of executive compensation and indicates continued alignment with the company's long-term interests. It does not present new information that would fundamentally alter the investment thesis for Erie Indemnity Co., thus a 'hold' recommendation is appropriate.

Keywords

Erie Indemnity, ERIE, Form 4, Insider Trading, Director Compensation, Share Credits, Beneficial Ownership, Deferred Compensation, Rule 10b5-1