Form 4: Graco Director Acquires Deferred Stock Compensation

Graco Inc. Director Jody H. Feragen acquired 348.69 deferred stock shares as part of her quarterly retainer fees, increasing her beneficial ownership to 12,991.1126 shares.

Summary

• Jody H. Feragen, a Director of Graco Inc. (GGG), acquired 348.69 deferred stock shares on October 1, 2025.
• These shares were received in lieu of quarterly retainer fees, under the Graco Inc. Amended and Restated 2019 Stock Incentive Plan.
• The deferred stock shares are to be settled 100% in Graco common stock upon Ms. Feragen's termination of service on the Board.
• The price of the derivative security at the time of acquisition was $84.69 per share.
• Following this transaction, Ms. Feragen beneficially owns a total of 12,991.1126 deferred stock shares.
• This total includes deferred stock shares acquired through the Graco Inc. Automatic Dividend Reinvestment Plan (DRIP), which are exempt under Rule 16a-11.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive as it indicates a director's continued commitment and alignment with shareholder interests through equity compensation, which is a standard and healthy corporate governance practice.

Positives

• The acquisition of deferred stock shares by a director aligns their interests with those of shareholders, as their compensation is tied to the company's stock performance.
• The transaction represents a routine compensation mechanism, indicating stable corporate governance practices regarding director remuneration.

Future Outlook

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

Industry Context

This transaction is a standard practice for compensating non-employee directors in publicly traded companies, often using equity-based awards to align director interests with long-term shareholder value. It reflects a common approach to corporate governance and executive compensation within the industrial manufacturing sector, where Graco Inc. operates.

Stakeholder Impact

• Shareholders: The transaction reinforces alignment between director compensation and shareholder value, as the director's stake in the company increases.
• Management: Reflects standard compensation practices for board members, supporting stable governance.

Next Steps

• The deferred stock shares will be settled in Graco common stock upon Ms. Feragen's termination of service on the Board.

Key Dates

Recommendation

This Form 4 filing details a routine compensation event for a director, where deferred stock shares were acquired in lieu of cash fees. While it demonstrates continued alignment of interests between the director and shareholders, it does not present new information significant enough to alter a fundamental investment thesis or warrant a 'buy' or 'sell' recommendation based solely on this filing. It is a standard operational disclosure.

Keywords

Graco Inc., GGG, Jody H. Feragen, Form 4, Insider Transaction, Deferred Stock, Director Compensation, Stock Incentive Plan, Beneficial Ownership