Form 4: Franklin Electric Director Gregg Sengstack Reports Routine Stock Vesting and Tax-Related Share Disposition

Gregg C. Sengstack, a Director at Franklin Electric Co Inc (FELE), reported the vesting of restricted stock and a related tax withholding transaction, alongside his significant direct and indirect beneficial ownership.

Summary

• Gregg C. Sengstack, a Director of Franklin Electric Co Inc (FELE), reported changes in his beneficial ownership of common stock.
• On June 1, 2025, Mr. Sengstack acquired 366 shares of common stock at a price of $86.39 per share due to the vesting of restricted stock.
• Concurrently, he disposed of 145 shares of common stock at the same price of $86.39 per share to cover tax withholding obligations.
• Following these transactions, Mr. Sengstack's direct beneficial ownership of Franklin Electric common stock stands at 140,715 shares.
• His direct holdings include 8,056 restricted shares vesting monthly through April 1, 2027, 11,436 restricted stock units vesting on February 22, 2027, 11,069 restricted stock units vesting on February 16, 2026, and 110,154 shares owned outright.
• Additionally, Mr. Sengstack holds significant indirect beneficial ownership, including 160,000 shares through the Gregg Sengstack 2020 Dynasty Trust, 115,000 shares through the Dianne Sengstack 2020 Dynasty Trust, 9,032 shares through the Sengstack Family Foundation, and 56,900 shares held by his spouse.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive as it reflects a routine vesting of equity compensation, indicating continued alignment of the director's interests with shareholders, despite a small tax-related disposition.

Positives

• The acquisition of 366 common stock shares through restricted stock vesting demonstrates continued equity alignment between the director and the company's performance.
• The substantial total beneficial ownership (direct and indirect) of 481,647 shares indicates a strong vested interest by the director in the long-term success and value creation of Franklin Electric.
• The presence of future vesting schedules for restricted shares and units provides a clear path for continued equity accumulation and aligns the director's incentives with shareholder returns.

Negatives

• The disposition of 145 common stock shares, while for routine tax withholding purposes, represents a reduction in the director's direct share count.

Future Outlook

The document indicates future vesting events for restricted shares and restricted stock units, with 8,056 restricted shares vesting monthly through April 1, 2027, 11,436 restricted stock units vesting on February 22, 2027, and 11,069 restricted stock units vesting on February 16, 2026. These represent future equity compensation for the reporting person.

Industry Context

This Form 4 filing is specific to an individual insider's stock transactions and beneficial ownership at Franklin Electric Co Inc. It does not provide information on broader industry trends or competitive dynamics.

Related Party Transactions

• Indirect beneficial ownership of 160,000 common stock shares held by the Gregg Sengstack 2020 Dynasty Trust, for which the reporting person's spouse is the trustee.
• Indirect beneficial ownership of 115,000 common stock shares held by the Dianne Sengstack 2020 Dynasty Trust, for which the reporting person is the trustee.
• Indirect beneficial ownership of 9,032 common stock shares held by the Sengstack Family Foundation, for which the reporting person is the president.
• Indirect beneficial ownership of 56,900 common stock shares held by the reporting person's spouse.

Stakeholder Impact

• Shareholders: The report indicates continued alignment of a key director's interests with the company's performance through equity compensation.
• Employees: No direct impact on general employees is indicated by this filing.
• Customers: No direct impact on customers is indicated by this filing.
• Suppliers: No direct impact on suppliers is indicated by this filing.
• Creditors: No direct impact on creditors is indicated by this filing.

Next Steps

• Continued monthly vesting of 8,056 restricted shares through April 1, 2027.
• Vesting of 11,069 restricted stock units on February 16, 2026.
• Vesting of 11,436 restricted stock units on February 22, 2027.

Key Dates

Keywords

Franklin Electric, FELE, SEC Form 4, Insider Trading, Beneficial Ownership, Stock Vesting, Restricted Stock Units, Director Holdings, Equity Compensation, Tax Withholding