Form 4: GPC Executive James Howe Granted 10,620 RSUs

Genuine Parts Co. President of Motion, James F. Howe, received a grant of 10,620 time-based Restricted Stock Units.

Summary

• James F. Howe, President of Motion at Genuine Parts Co. (GPC), was granted 10,620 shares of common stock in the form of time-based Restricted Stock Units (RSUs).
• The transaction occurred on September 4, 2025, with a reported acquisition price of $0 per share, typical for RSU grants.
• These RSUs are subject to a cliff vesting schedule, meaning they will fully vest on the third anniversary of the grant date.
• Following this transaction, Mr. Howe directly beneficially owns 29,044 shares of GPC common stock.
• The transaction was made pursuant to a contract, instruction, or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Sentiment

Score: 7

Explanation: The grant of RSUs is a positive event for the executive, aligning their interests with the company's long-term performance. For the company, it's a standard compensation practice, generally viewed as neutral to slightly positive for governance and retention.

Positives

• The grant of 10,620 Restricted Stock Units to a key executive aligns management's long-term interests with those of shareholders.
• The use of time-based RSUs encourages executive retention over a three-year period until vesting.

Negatives

• There are no immediate cash benefits to the executive from this grant, as the shares vest over time.
• The value of the grant is subject to the future market performance of GPC's common stock.

Risks

• The value of the granted RSUs is subject to market fluctuations of Genuine Parts Co. common stock.
• Mr. Howe risks forfeiture of the unvested RSUs if his employment terminates before the third anniversary of the grant date.

Future Outlook

The granted Restricted Stock Units are scheduled to cliff vest on the third anniversary of the grant date, indicating a future equity stake for the executive contingent on continued employment.

Industry Context

The grant of Restricted Stock Units is a common practice in executive compensation across various industries, serving as a long-term incentive to align management's performance with shareholder value creation and to promote executive retention.

Comparison to Industry Standards

• The use of time-based Restricted Stock Units (RSUs) as a component of executive compensation is a standard practice, comparable to long-term incentive plans at companies like AutoZone (AZO) or O'Reilly Automotive (ORLY) within the automotive parts distribution sector, or other large industrial distributors.
• The cliff vesting schedule over three years is a typical duration for such grants, aiming to retain key executives and incentivize sustained performance.

Stakeholder Impact

• Shareholders: The grant represents a minor potential future dilution, but it is intended to align executive incentives with long-term shareholder value.
• Employees: No direct impact on the broader employee base is indicated by this executive compensation event.

Next Steps

• The granted RSUs will vest on the third anniversary of the grant date, contingent on James F. Howe's continued employment with Genuine Parts Co.

Key Dates

Recommendation

This Form 4 reports a routine RSU grant to a key executive, which is a standard compensation event and does not indicate any material change in the company's financial health, strategic direction, or operational performance that would warrant a change in investment recommendation. It primarily serves to align executive interests with long-term shareholder value.

Keywords

Genuine Parts Co, GPC, James F. Howe, Restricted Stock Units, RSU, Stock Grant, Executive Compensation, Insider Transaction, Form 4, Equity Compensation