Form 4: Henry Schein SVP Lorelei McGlynn Reports Stock Transactions

Lorelei McGlynn, SVP and Chief Human Resources Officer at Henry Schein, reports the acquisition and disposal of company stock, including shares surrendered for tax obligations and a grant of restricted stock units.

Summary

• On March 1, 2024, Lorelei McGlynn surrendered 1,473 shares of Henry Schein common stock to cover tax obligations at a price of $76.88 per share.
• On March 4, 2024, McGlynn was granted 12,566 restricted stock units (RSUs) under the company's 2020 Stock Incentive Plan.
• 50% of the RSUs will vest based on the company's achievement of a specified performance goal and McGlynn's continued service.
• The other 50% will vest based on a specified period of time and McGlynn's continued service.
• McGlynn also holds 496 shares of Henry Schein common stock indirectly through a 401(k) plan.
• Following these transactions, McGlynn directly owns 92,868 shares of Henry Schein common stock and indirectly owns 496 shares through the 401(k) plan.

Sentiment

Score: 6

Explanation: Neutral sentiment as the document primarily reports routine stock transactions. The RSU grant is a positive sign of aligning executive interests, but the tax-related share surrender is a neutral event.

Positives

• The grant of restricted stock units aligns McGlynn's interests with the company's performance and long-term success.

Future Outlook

The vesting of the restricted stock units is contingent upon performance goals and continued service, suggesting an ongoing commitment from the executive.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies and are often used to align management's interests with those of shareholders. Form 4 filings are a standard part of regulatory compliance.

Comparison to Industry Standards

• Executive compensation packages, including grants of restricted stock units, are common in the healthcare distribution industry.
• Companies like McKesson, Cardinal Health, and AmerisourceBergen also utilize stock-based compensation to incentivize their executives.
• The vesting terms (performance-based and time-based) are typical structures used to ensure both short-term and long-term alignment with company goals.

Stakeholder Impact

• The stock transactions may have a minor impact on shareholders due to the change in ownership.
• The RSU grant incentivizes the executive to contribute to the company's success, potentially benefiting employees and other stakeholders.

Key Dates