Form 4: Hanover Insurance EVP Lavey Receives RSU Grant

Richard W. Lavey, Executive Vice President of Hanover Insurance Group, Inc., was granted 30.586 shares of common stock as restricted stock units.

Summary

• Richard W. Lavey, Executive Vice President of Hanover Insurance Group, Inc. (THG), acquired 30.586 shares of common stock.
• The acquisition occurred on September 26, 2025.
• These shares were granted as Restricted Stock Units (RSUs) under the company's 2022 Long-Term Incentive Plan (2022 LTIP).
• The grant is related to the accrual of dividend equivalent rights on previously issued RSUs.
• The RSUs are scheduled to vest on the third anniversary of the date of grant of the original underlying RSUs.
• Following this transaction, Lavey beneficially owns 39,142.294 shares of common stock.

Sentiment

Score: 7

Explanation: The grant of Restricted Stock Units (RSUs) to a key executive is a positive signal for aligning management incentives with long-term shareholder value, although it is a routine compensation event.

Positives

• Executive Vice President Richard W. Lavey received a grant of 30.586 shares of common stock in the form of Restricted Stock Units (RSUs).
• The grant increases Lavey's beneficial ownership in Hanover Insurance Group, Inc. to 39,142.294 shares, aligning management interests with shareholders.
• The RSUs are part of the company's 2022 Long-Term Incentive Plan, indicating ongoing commitment to executive compensation and retention.

Future Outlook

The granted Restricted Stock Units (RSUs) are scheduled to vest on the third anniversary of the date of grant of the original underlying RSUs, aligning executive incentives with long-term company performance.

Industry Context

The grant of Restricted Stock Units (RSUs) to an executive is a common practice in the insurance industry and broader corporate landscape, serving as a key component of long-term incentive plans designed to align executive interests with shareholder value creation and retention.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) with a multi-year vesting schedule is a standard practice for executive compensation across various industries, including insurance, to promote long-term commitment and performance.
• This aligns with compensation structures seen at peers such as Travelers Companies (TRV) and Chubb Limited (CB).

Related Party Transactions

• The grant of Restricted Stock Units (RSUs) to Executive Vice President Richard W. Lavey is a related party transaction, specifically an executive compensation event under the company's 2022 Long-Term Incentive Plan.

Stakeholder Impact

• Shareholders: Increased alignment of executive interests with long-term shareholder value through equity ownership.
• Employees (Executive): Receipt of long-term incentive compensation, enhancing retention and motivation.

Next Steps

• The Restricted Stock Units (RSUs) are scheduled to vest on the third anniversary of the original underlying RSU grant date.

Key Dates

Recommendation

This Form 4 filing details a routine grant of Restricted Stock Units (RSUs) to an executive as part of their compensation package. While it aligns executive interests with shareholders, it does not present new material information that would fundamentally alter the investment thesis for Hanover Insurance Group, Inc. Therefore, a 'hold' recommendation is appropriate as this is an expected operational event.

Keywords

Hanover Insurance, THG, Form 4, RSU, Restricted Stock Units, Executive Compensation, Insider Transaction, Richard Lavey