Form 4: Graco Director Jody Feragen Increases Holdings Through Deferred Stock Compensation

Graco Inc. Director Jody H. Feragen acquired 344.6 deferred stock shares as part of her quarterly retainer fees, increasing her total beneficial ownership to 12,600.8779 deferred shares.

Summary

• Jody H. Feragen, a Director of Graco Inc. (GGG), acquired 344.6 deferred stock shares.
• These shares were received in lieu of quarterly retainer fees.
• The acquisition occurred on July 1, 2025, under 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 Ms. Feragen's termination of service on the Board.
• The reported price for these shares was $85.97.
• Following this transaction, Ms. Feragen's total beneficial ownership of deferred stock shares is 12,600.8779, which includes shares acquired through the Automatic Dividend Reinvestment Plan (DRIP).

Sentiment

Score: 6

Explanation: Slightly positive as a director is increasing their stake, aligning interests with shareholders, through a routine compensation mechanism.

Positives

• A director is increasing their stake in the company, aligning their interests with shareholders.
• The use of deferred stock for compensation indicates a long-term commitment from the director.

Future Outlook

The deferred stock shares are scheduled to be settled in Graco common stock upon the reporting person's termination of service on the Board, indicating a future conversion event.

Industry Context

This filing is a routine disclosure of insider transactions, common across all publicly traded companies, reflecting standard director compensation practices within the industrial manufacturing sector.

Comparison to Industry Standards

• The practice of compensating directors with deferred stock is a common corporate governance practice among U.S. public companies, including peers in the industrial sector like Illinois Tool Works (ITW) or Dover Corporation (DOV), as it aligns director interests with long-term shareholder value.
• The specific amount of shares and their value would be benchmarked against similar-sized companies and director roles, but this filing alone does not provide enough context for a detailed comparative analysis.

Corporate Governance

Related Party Transactions

• Director Jody H. Feragen, a related party, acquired deferred stock shares from Graco Inc. as compensation for her board service.

Stakeholder Impact

• Shareholders: The transaction aligns the director's interests with shareholders by increasing her equity stake in the company.
• Employees: No direct impact mentioned.
• Customers: No direct impact mentioned.
• Suppliers: No direct impact mentioned.
• Creditors: No direct impact mentioned.

Next Steps

• Settlement of deferred stock shares in Graco common stock upon Director Jody H. Feragen's termination of service on the Board.

Key Dates

Keywords

Graco Inc., GGG, SEC Form 4, Insider Trading, Director Compensation, Deferred Stock, Stock Incentive Plan, Share Acquisition, Jody H. Feragen, Corporate Governance