Form 4: Graco Inc. Director Etchart Reports Acquisition of Deferred Stock Shares

Director Eric Etchart reports acquiring deferred stock shares in Graco Inc. under the company's stock incentive plan.

Summary

• On April 1, 2025, Eric Etchart, a director of Graco Inc., acquired 294.87 deferred stock shares.
• These shares were accrued under the Graco Inc. Amended and Restated 2019 Stock Incentive Plan.
• The deferred stock shares will be settled 100% in Graco common stock upon Mr. Etchart's termination of service on the Board, either in a lump sum or installments.
• The shares were received in lieu of quarterly retainer fees.
• The reporting person directly owns 16,322.001 deferred stock shares.
• The reported number includes shares acquired under the Graco Inc. Automatic Dividend Reinvestment Plan (DRIP).

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The transaction reflects standard compensation practices and insider confidence, but it's not a major event that would significantly impact the company's outlook.

Positives

• The director's acquisition of shares demonstrates confidence in the company's future.
• The deferred stock plan aligns the director's interests with those of the shareholders.

Future Outlook

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

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies. It provides transparency regarding the holdings of company directors and officers.

Comparison to Industry Standards

• Director compensation packages often include deferred stock or restricted stock units to align their interests with long-term shareholder value.
• Companies like Illinois Tool Works (ITW) and Dover Corporation (DOV), which are Graco's peers, also utilize similar stock-based compensation plans for their directors.
• The vesting and settlement terms are typical, with settlement often tied to the director's departure from the board.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning the director's interests with the company's long-term performance.
• Employees are indirectly impacted as the director's incentives are tied to the overall success of the company.

Key Dates

Keywords

Graco Inc., Eric Etchart, deferred stock, Form 4, director, stock incentive plan, beneficial ownership, DRIP