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

Director Jody H Feragen reported acquiring deferred stock shares in Graco Inc. on October 1, 2024.

Summary

• On October 1, 2024, Jody H Feragen, a director of Graco Inc., reported acquiring 338.53 deferred stock shares.
• These shares were accrued under the Graco Inc. Amended and Restated 2019 Stock Incentive Plan.
• The shares will be settled 100% in Graco common stock upon termination of service on the Board, either in a lump sum or installments.
• The price of the deferred stock was $87.51.
• Following the transaction, Ms. Feragen beneficially owns 11,438.0585 deferred stock shares.
• This number includes shares acquired under the Graco Inc. Automatic Dividend Reinvestment Plan (DRIP).

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a routine transaction (director compensation) that aligns interests with shareholders.

Positives

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

Future Outlook

The deferred stock shares will be settled 100% in Graco common stock in a lump sum or installments upon reporting person's termination of service on the Board.

Industry Context

Directors receiving stock-based compensation is a common practice in publicly traded companies to align their interests with shareholders and incentivize long-term value creation.

Comparison to Industry Standards

• Stock-based compensation for directors is a standard practice across various industries.
• Companies like Illinois Tool Works (ITW) and Dover Corporation (DOV), which operate in similar industrial sectors, also utilize stock-based compensation plans for their board members.
• The specifics of these plans, such as vesting schedules and settlement terms, can vary based on company policy and industry norms.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning the director's interests with the company's long-term performance.

Key Dates