Form 4: Hanover Insurance EVP Lavey Receives RSU Grant

Richard W. Lavey, Executive Vice President of Hanover Insurance Group, Inc., was granted 31.585 restricted stock units for dividend equivalent rights.

Summary

• Richard W. Lavey, Executive Vice President of Hanover Insurance Group, Inc. (THG), acquired 31.585 shares of common stock.
• The transaction occurred on December 26, 2025, and was a grant of restricted stock units (RSUs).
• These RSUs were granted under the Issuer's 2022 Long-Term Incentive Plan (2022 LTIP) and are associated with the accrual of dividend equivalent rights from previously granted RSUs.
• The RSUs were acquired at a price of $0, indicating a grant rather than a cash purchase.
• Following this transaction, Mr. Lavey beneficially owns 39,173.879 shares of common stock.
• The RSUs will vest on the third anniversary of the date of grant of the original underlying RSUs.

Sentiment

Score: 6

Explanation: Slightly positive. While a routine compensation event, it represents an increase in insider ownership and aligns executive interests with shareholders, which is generally viewed favorably.

Positives

• The grant of restricted stock units aligns the Executive Vice President's interests with those of shareholders.
• Increased beneficial ownership by a key executive, even if a small amount, can signal confidence in the company's future.

Future Outlook

The granted restricted stock units are scheduled to vest on the third anniversary of the date of grant of the original underlying RSUs, linking future compensation to long-term performance.

Industry Context

The grant of restricted stock units as part of an executive's compensation package, including dividend equivalent rights, is a common practice in the insurance and broader financial services industry. This mechanism is widely used to incentivize long-term performance and align executive interests with shareholder value creation.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a component of executive compensation is a standard practice across publicly traded companies, including peers in the insurance sector such as Travelers Companies (TRV) or Chubb Limited (CB).
• Granting RSUs for dividend equivalent rights is also a common feature in long-term incentive plans, ensuring executives benefit from dividends declared on unvested shares, similar to practices observed at companies like Allstate (ALL) or Progressive (PGR).
• The vesting schedule, typically over several years, is consistent with industry benchmarks designed to promote executive retention and focus on sustained company performance.

Corporate Governance

Stakeholder Impact

• Shareholders: The grant of RSUs to an executive helps align management's interests with shareholder value creation, as the executive's compensation is tied to the company's stock performance.
• Employees: This transaction is part of the company's executive compensation strategy, which can influence overall employee morale and retention by demonstrating a structured approach to rewarding leadership.

Next Steps

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

Key Dates

Keywords

Hanover Insurance Group, THG, Richard W. Lavey, Form 4, SEC Filing, Restricted Stock Units, RSU Grant, Executive Compensation, Insider Transaction, Dividend Equivalent Rights, Long-Term Incentive Plan