Form 4: Graco Director Acquires Deferred Stock

Graco Inc. Director J Kevin Gilligan acquired 392.83 deferred stock shares in lieu of quarterly retainer fees, increasing his beneficial ownership.

Summary

• J Kevin Gilligan, a Director of Graco Inc. (GGG), acquired 392.83 deferred stock shares on October 1, 2025.
• These shares were received in lieu of quarterly retainer fees, as part of the Graco Inc. Amended and Restated 2019 Stock Incentive Plan.
• The deferred stock shares are to be settled 100% in Graco common stock in a lump sum or installments upon Mr. Gilligan's termination of service on the Board.
• The acquisition price for these derivative securities was $84.69 per share.
• Following this transaction, Mr. Gilligan beneficially owns a total of 96,946.4044 deferred stock shares, which includes shares acquired through the Graco Inc. Automatic Dividend Reinvestment Plan (DRIP).

Sentiment

Score: 7

Explanation: The acquisition of deferred stock shares by a director, received in lieu of cash compensation, is a routine transaction that aligns the director's interests with shareholders. It is not a significant market-moving event but reflects ongoing commitment and is generally viewed as a positive, albeit minor, indicator of insider confidence.

Positives

• The acquisition of deferred stock shares by a director aligns their financial interests more closely with those of the company's shareholders.
• This transaction represents a routine compensation method for directors, indicating ongoing commitment to the company.

Future Outlook

The deferred stock shares will be settled 100% in Graco common stock, either as a lump sum or in installments, upon the reporting person's termination of service on the Board.

Industry Context

This transaction is a routine insider filing, common across publicly traded companies where directors receive a portion of their compensation in equity or equity-linked instruments to align their interests with long-term shareholder value. It does not indicate any specific industry trend or competitive development.

Comparison to Industry Standards

• The practice of compensating directors with deferred stock or equity awards in lieu of cash is a widely adopted corporate governance standard among U.S. public companies, including peers in the industrial manufacturing sector like Illinois Tool Works (ITW) or Dover Corporation (DOV).
• This method is considered a best practice for fostering long-term commitment and aligning director incentives with company performance, similar to how many S&P 500 companies structure their non-employee director compensation.

Stakeholder Impact

• Shareholders: Increased alignment of director's interests with shareholder value and long-term company performance.

Next Steps

• Settlement of the deferred stock shares in Graco common stock upon the reporting person's termination of service on the Board.

Key Dates

Recommendation

This Form 4 filing reports a routine acquisition of deferred stock shares by a director as part of their compensation. Such transactions are common and generally indicate alignment of interests but do not provide new fundamental information that would warrant a change in investment recommendation for Graco Inc. The transaction is expected and does not signal any significant operational or strategic shifts.

Keywords

Graco Inc., GGG, J Kevin Gilligan, Form 4, Insider Transaction, Deferred Stock, Director Compensation, Stock Incentive Plan, Beneficial Ownership