Form 4: Graco Director J. Kevin Gilligan Acquires Additional Deferred Stock Shares

Graco Inc. Director J. Kevin Gilligan acquired 388.22 deferred stock shares as part of his quarterly retainer, increasing his total beneficial ownership to over 96,000 shares.

Summary

• J. Kevin Gilligan, a Director of Graco Inc., acquired 388.22 deferred stock shares.
• The shares were received in lieu of quarterly retainer fees.
• The acquisition was made under the Graco Inc. Amended and Restated 2019 Stock Incentive Plan.
• These deferred stock shares are to be settled 100% in Graco common stock, either in a lump sum or installments, upon Mr. Gilligan's termination of service on the Board.
• The acquisition price for these shares was $85.97 per share.
• Following this transaction, Mr. Gilligan beneficially owns a total of 96,236.2865 deferred stock shares.
• The total beneficial ownership includes deferred stock shares acquired through the Graco Inc. Automatic Dividend Reinvestment Plan (DRIP).

Sentiment

Score: 7

Explanation: The filing reports a routine acquisition of deferred stock shares by a director as part of compensation, which is a neutral event but slightly positive as it increases insider ownership and aligns interests.

Positives

• Director J. Kevin Gilligan increased his beneficial ownership in Graco Inc. by acquiring 388.22 deferred stock shares.
• The acquisition of shares in lieu of cash retainer fees aligns the director's financial interests more closely with those of shareholders.
• The total beneficial ownership of 96,236.2865 shares indicates a significant and growing stake held by a board member.

Future Outlook

Deferred stock shares are to be settled 100% in Graco common stock in a lump sum or installments upon the reporting person's termination of service on the Board, indicating a long-term incentive structure.

Industry Context

The acquisition of deferred stock shares as part of director compensation is a common practice in corporate governance, aligning the interests of board members with long-term shareholder value.

Comparison to Industry Standards

• The use of deferred stock as a component of director compensation is a widely accepted practice across various industries, consistent with best practices for aligning director incentives with company performance and shareholder interests.

Corporate Governance

Related Party Transactions

• Acquisition of 388.22 deferred stock shares by Director J. Kevin Gilligan as part of his quarterly retainer fees, which is a standard compensation arrangement between the company and a board member.

Stakeholder Impact

• Shareholders: Increased alignment of director's interests with shareholders due to increased stock ownership.

Next Steps

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

Key Dates

Recommendation

Keywords

Graco Inc., GGG, J. Kevin Gilligan, Director, SEC Form 4, insider transaction, stock acquisition, deferred stock, executive compensation, corporate governance