Form 4: Graco Director Receives Stock Option Grant

Graco Inc. Director Andrea Helen Simon was granted 5,240 non-qualified stock options with an exercise price of $94.28, vesting over four years.

Summary

• Andrea Helen Simon, a Director of Graco Inc. (GGG), was granted 5,240 non-qualified stock options.
• The stock options have an exercise price of $94.28 per share.
• The grant date for these options was February 13, 2026.
• The options will become exercisable in four equal annual installments, commencing one year after the grant date.
• The expiration date for these stock options is February 13, 2036.
• The transaction was made pursuant to the Graco Inc. Amended and Restated 2019 Stock Incentive Plan and is exempt under Rule 16b-3.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a routine compensation event for a non-employee director, which is neither significantly positive nor negative for the company's immediate outlook or fundamental valuation.

Positives

• The grant of stock options aligns the director's financial interests with the long-term performance and shareholder value of Graco Inc.

Negatives

• No immediate negative impacts are identified from this routine compensation event.

Risks

• The value of the stock options is subject to the future market price of Graco Inc. common stock, meaning the options may not be profitable if the stock price does not increase above the exercise price.
• Potential future dilution for existing shareholders if and when the options are exercised.

Future Outlook

The stock options will vest in four equal annual installments, commencing one year after the grant date, indicating a future increase in the director's beneficial ownership of exercisable options over the next four years.

Industry Context

StockSavvy.ai notes that stock option grants are a standard component of non-employee director compensation across industries, aligning their interests with long-term shareholder value and incentivizing sustained performance.

Comparison to Industry Standards

• StockSavvy.ai notes that the grant of 5,240 options to a non-employee director is within typical ranges for companies of Graco's size and market capitalization, comparable to similar grants at industrial manufacturing peers like Dover Corporation or Illinois Tool Works, reflecting standard corporate governance practices for director remuneration.

Corporate Governance

Related Party Transactions

• Grant of 5,240 non-qualified stock options to Andrea Helen Simon, a Director of Graco Inc., as part of her compensation.

Stakeholder Impact

• Shareholders: Potential for minor future dilution if options are exercised, but also benefit from increased alignment of director's interests with company performance.
• Director (Andrea Helen Simon): Receives equity-based compensation, providing an incentive tied to the company's stock performance.

Next Steps

• The stock options will vest in four equal annual installments, commencing one year after the grant date, leading to exercisability over the next four years.

Key Dates

Recommendation

This Form 4 reports a standard stock option grant to a director, which is a routine compensation event and does not provide new information to alter an investment thesis for Graco Inc. The filing does not present any material changes to the company's financial health, strategic direction, or risk profile that would warrant a change in investment recommendation.

Keywords

Graco Inc., GGG, Form 4, stock option, director compensation, insider transaction, equity incentive