Form 4: Hanover Insurance Group Executive Receives RSU Grant for Dividend Equivalents

Dennis Francis Kerrigan, Executive Vice President of Hanover Insurance Group, was granted 18.647 restricted stock units on June 27, 2025, as dividend equivalent rights under the company's 2022 Long-Term Incentive Plan.

Summary

• Dennis Francis Kerrigan, Executive Vice President of Hanover Insurance Group, acquired 18.647 shares of Common Stock on June 27, 2025.
• The acquisition was a grant of restricted stock units (RSUs) at a price of $0 per share.
• These RSUs were granted under the Issuer's 2022 Long-Term Incentive Plan (2022 LTIP) and represent dividend equivalent rights associated with previously granted RSUs.
• The granted RSUs are scheduled to vest on the third anniversary of the date of grant of the original underlying RSUs.
• Following this transaction, Dennis Kerrigan beneficially owns a total of 10,014.235 shares of Common Stock.

Sentiment

Score: 7

Explanation: The transaction is a routine executive compensation event, indicating stability and adherence to established incentive plans. It is positive for aligning management interests but not a major market-moving event on its own.

Positives

• The grant of restricted stock units to an Executive Vice President aligns executive incentives with shareholder interests, promoting long-term value creation.
• The transaction is part of the company's established 2022 Long-Term Incentive Plan, indicating a structured and consistent approach to executive compensation and retention.

Future Outlook

The vesting of the granted restricted stock units is scheduled for the third anniversary of the original underlying RSU grant date, which is intended to align executive incentives with the company's long-term performance.

Industry Context

This transaction represents a routine executive compensation event within the insurance industry, where long-term incentive plans, including RSU grants and dividend equivalent rights, are common mechanisms used to align management interests with shareholder value creation and executive retention.

Comparison to Industry Standards

• Granting restricted stock units (RSUs) as part of a long-term incentive plan is a standard practice in the financial and insurance sectors, comparable to compensation structures at companies like Travelers Companies (TRV), Chubb Limited (CB), and Allstate Corporation (ALL).
• The inclusion of dividend equivalent rights on RSUs is also a common feature in such plans, ensuring that RSU holders benefit from dividends declared on underlying shares before vesting, similar to practices observed at peer companies.
• The vesting schedule, typically over several years (e.g., three years as indicated), is consistent with industry norms designed to promote long-term executive retention and performance.

Stakeholder Impact

• Shareholders: The grant of RSUs aligns the interests of Executive Vice President Dennis Kerrigan with shareholders by tying a portion of his compensation to the company's long-term stock performance and dividend policy.
• Employees: This transaction is part of a broader long-term incentive plan, which can positively influence employee morale and retention by demonstrating a commitment to performance-based compensation.

Next Steps

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

Key Dates

Recommendation

Keywords

Hanover Insurance Group, THG, SEC filing, Form 4, insider transaction, restricted stock units, RSU grant, executive compensation, long-term incentive plan, dividend equivalent rights