Form 4: Hanover EVP Lowsley Receives RSU Dividend Equivalents

Denise Lowsley, Executive Vice President at Hanover Insurance Group, acquired 11.468 shares of common stock through a restricted stock unit grant related to dividend equivalent rights.

Summary

• Executive Vice President Denise Lowsley acquired 11.468 shares of The Hanover Insurance Group, Inc. common stock.
• The acquisition occurred on September 26, 2025, and was a grant of restricted stock units (RSUs).
• These RSUs were granted under the company's 2022 Long-Term Incentive Plan (2022 LTIP).
• The grant is specifically for the accrual of dividend equivalent rights associated with RSUs previously awarded under the same 2022 LTIP.
• The RSUs vest on the third anniversary of the original underlying RSU grant date.
• Following this transaction, Ms. Lowsley beneficially owns 5,130.496 shares directly.

Sentiment

Score: 7

Explanation: The filing reports a routine executive compensation event (RSU grant with dividend equivalents), which is generally positive for executive retention and alignment with shareholder interests, but not a significant market-moving event on its own.

Positives

• Grant of additional restricted stock units (RSUs) to an Executive Vice President, indicating continued alignment of management interests with shareholder value.
• The RSUs are tied to dividend equivalent rights, ensuring executives benefit from company performance and dividend payouts.

Future Outlook

The granted restricted stock units will vest on the third anniversary of the original underlying RSU grant date, aligning future compensation with long-term performance.

Industry Context

This transaction reflects a standard practice in executive compensation within the insurance industry, where long-term incentive plans often include equity awards like RSUs to retain talent and align executive interests with company performance.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as part of executive compensation is a common practice across the financial and insurance sectors, comparable to companies like Travelers Companies (TRV) or Chubb Limited (CB).
• Including dividend equivalent rights with RSUs is also a standard feature in many long-term incentive plans, ensuring executives receive the economic benefit of dividends even before vesting, similar to practices at Aflac (AFL) or MetLife (MET).
• A three-year vesting period for RSUs is typical for long-term incentive plans, promoting retention and long-term focus, consistent with industry benchmarks.

Stakeholder Impact

• Shareholders: Aligns executive incentives with long-term shareholder value through equity ownership and dividend equivalent rights.
• Employees: Reflects the company's ongoing executive compensation strategy.

Next Steps

• The granted restricted stock units will vest on the third anniversary of the original underlying RSU grant date.

Key Dates

Recommendation

This Form 4 filing details a routine executive compensation event involving the grant of restricted stock units with dividend equivalent rights. While it indicates continued alignment of management interests with shareholder value, it does not present new information that would fundamentally alter the investment thesis for The Hanover Insurance Group, Inc. Therefore, a "hold" recommendation is appropriate, maintaining current positions based on broader company fundamentals rather than this specific insider transaction.

Keywords

Hanover Insurance Group, THG, Form 4, Restricted Stock Units, RSU, Dividend Equivalent Rights, Executive Compensation, Insider Transaction, Denise Lowsley, 2022 LTIP