Form 4: Hormel Foods Executive Receives Equity Awards

Hormel Foods Group Vice President Kevin L. Myers was granted 10,792 restricted stock units and 69,500 stock options on December 9, 2025.

Summary

• Kevin L. Myers, Group Vice President of Hormel Foods Corp /DE/ (HRL), received an award of 10,792 shares of Common Stock in the form of restricted stock units (RSUs) on December 9, 2025.
• These RSUs were granted pursuant to the Hormel Foods Corporation 2018 Incentive Compensation Plan and will vest three years after the grant date.
• Myers also received an award of 69,500 stock options on December 9, 2025, with an exercise price of $23.63 per share.
• These stock options, also granted under the 2018 Incentive Compensation Plan, will vest in four equal annual installments, with the first installment vesting on December 9, 2026.
• Following these transactions, Myers directly beneficially owns 56,787.705 shares of Common Stock and 69,500 stock options.
• Indirect beneficial ownership includes 5,428.267 shares in a 401(k) Plan and 2,891.663 shares in a JEPST Plan.

Sentiment

Score: 7

Explanation: Routine executive compensation awards, aligning management incentives with long-term shareholder value, which is generally viewed positively for corporate governance and executive motivation.

Positives

• The equity awards align the executive's long-term interests with those of shareholders, incentivizing sustained company performance.
• The awards are part of a structured incentive compensation plan, indicating a commitment to retaining and motivating key management personnel.

Negatives

• The awards do not represent an immediate cash payout to the executive, as they are subject to vesting schedules.
• The value of the awards is dependent on the future market performance of Hormel Foods' common stock.

Risks

• The value of the restricted stock units and stock options is subject to market fluctuations of Hormel Foods' common stock.
• The awards may be forfeited if the executive's employment terminates before the vesting conditions are met.

Future Outlook

The equity awards are designed to align the executive's compensation with the company's future performance and long-term shareholder value creation, with vesting schedules extending several years into the future.

Industry Context

The granting of equity awards such as restricted stock units and stock options is a standard practice in executive compensation across publicly traded companies, including those in the consumer packaged goods sector, to incentivize long-term performance and align management interests with shareholders.

Comparison to Industry Standards

• The structure of multi-year vesting for both restricted stock units (RSUs) and stock options is a common industry standard for executive compensation plans, aiming to foster long-term commitment and performance.
• While specific award sizes vary based on company size, executive role, and performance metrics, the use of a combination of RSUs and stock options is a prevalent strategy among peer companies in the food and beverage industry to balance retention and performance incentives.

Corporate Governance

Stakeholder Impact

• Shareholders: The awards aim to align the executive's financial interests with long-term shareholder value creation.
• Employees: Standard executive compensation practices can influence overall company culture and compensation philosophy.

Next Steps

• The restricted stock units will vest three years after the grant date of December 9, 2025.
• The stock options will vest in four equal annual installments, with the first installment on December 9, 2026.

Key Dates

Recommendation

This Form 4 reports routine equity compensation awards to an executive, which is a standard practice for aligning management incentives with long-term shareholder value. It does not provide new information that would significantly alter the investment thesis for Hormel Foods, hence a 'hold' recommendation is maintained based solely on this filing.

Keywords

Hormel Foods, HRL, SEC Form 4, insider transaction, equity award, restricted stock units, stock options, executive compensation, beneficial ownership