Form 4: Graco Director Acquires Deferred Stock Shares

Graco Inc. Director J Kevin Gilligan acquired 407.16 deferred stock shares as part of his quarterly retainer, increasing his total beneficial ownership to 97,677.3871 shares.

Summary

• J Kevin Gilligan, a Director of Graco Inc. (GGG), acquired 407.16 deferred stock shares on January 1, 2026.
• These shares were received in lieu of quarterly retainer fees.
• The deferred stock shares are accrued under the Graco Inc. Amended and Restated 2019 Stock Incentive Plan.
• They 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 included shares from the Graco Inc. Automatic Dividend Reinvestment Plan (DRIP), which are exempt under Rule 16a-11.
• Following this transaction, Mr. Gilligan beneficially owns a total of 97,677.3871 deferred stock shares.
• The price of the underlying common stock at the time of acquisition was $81.97 per share.

Sentiment

Score: 7

Explanation: The acquisition of additional shares by a director, even as routine compensation, is generally viewed as a positive signal, indicating continued alignment of interests with shareholders and confidence in the company's future.

Positives

• Director J Kevin Gilligan increased his beneficial ownership in Graco Inc. by acquiring 407.16 deferred stock shares.
• This acquisition, as part of his compensation, aligns his interests more closely with those of shareholders.
• The transaction was conducted under a pre-existing, approved stock incentive plan, indicating structured corporate governance regarding executive compensation.

Future Outlook

NA

Industry Context

The acquisition of deferred stock shares as part of director compensation is a common practice across industries, aiming to align the interests of board members with long-term shareholder value. This routine transaction by a Graco director is consistent with standard corporate governance practices.

Comparison to Industry Standards

• The use of deferred stock shares as compensation for directors is a widely adopted practice among publicly traded companies, including peers in the industrial manufacturing sector like Illinois Tool Works (ITW) or Dover Corporation (DOV), to foster long-term commitment and align interests with shareholders.
• The Graco Inc. Amended and Restated 2019 Stock Incentive Plan, under which these shares were granted, is a typical mechanism for equity-based compensation, comparable to plans at companies such as Parker-Hannifin (PH) or Eaton Corporation (ETN) which also utilize similar structures for their board and executives.

Related Party Transactions

• The acquisition of deferred stock shares by Director J Kevin Gilligan from Graco Inc. as part of his compensation constitutes a related party transaction.

Stakeholder Impact

• Shareholders: The transaction aligns the director's financial interests more closely with long-term shareholder value.
• Employees: No direct impact mentioned in this filing.

Next Steps

• 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.

Key Dates

Recommendation

This Form 4 filing details a routine compensation transaction where a director acquired deferred stock shares. While it represents a minor positive signal of aligned interests, it does not provide new fundamental information or significant changes to the company's outlook that would warrant a change in investment recommendation. Therefore, a 'hold' recommendation is appropriate, maintaining existing positions based on broader company fundamentals.

Keywords

Graco, GGG, Form 4, Insider Transaction, Director Compensation, Deferred Stock, Stock Incentive Plan, Dividend Reinvestment Plan