Form 4: Graco Inc. Director Jody H. Feragen Reports Acquisition of Deferred Stock

Director Jody H. Feragen reports acquiring deferred stock in Graco Inc. under the company's stock incentive plan.

Summary

• On January 1, 2025, Jody H. Feragen, a director of Graco Inc., acquired 351.47 shares of deferred stock.
• These shares were accrued under the Graco Inc. Amended and Restated 2019 Stock Incentive Plan.
• The deferred stock will be settled in Graco common stock upon termination of service on the Board, either in a lump sum or installments.
• The acquisition was in lieu of quarterly retainer fees.
• The reporting person directly owns 11,822.3634 deferred stock shares.
• Some of the deferred stock shares were acquired under the Graco Inc. Automatic Dividend Reinvestment Plan (DRIP).

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The filing reflects standard compensation practices and insider confidence in the company, but doesn't contain any groundbreaking news.

Positives

• The acquisition of deferred stock aligns the director's interests with the long-term performance of the company.
• Participation in the DRIP demonstrates confidence in the company's future prospects.

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

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.

Comparison to Industry Standards

• Director compensation in the form of deferred stock is a common practice among publicly traded companies to align the interests of directors with those of shareholders.
• Many companies use stock incentive plans and DRIPs to encourage long-term investment and ownership by directors and employees.
• Graco's Amended and Restated 2019 Stock Incentive Plan is likely comparable to similar plans offered by companies in the industrial manufacturing sector, such as Illinois Tool Works (ITW) or Parker-Hannifin (PH).

Stakeholder Impact

• The acquisition of deferred stock by a director can be viewed positively by shareholders as it aligns the director's interests with the company's long-term success.

Key Dates