Form 4: Hormel SVP Lilly Receives Significant Equity Awards

Hormel Foods Senior Vice President Pierre M. Lilly was granted 8,464 restricted stock units and 27,200 stock options on December 9, 2025.

Summary

• Pierre M. Lilly, Senior Vice President of Hormel Foods Corp, received equity awards on December 9, 2025.
• Awards include 8,464 shares of Common Stock in the form of Restricted Stock Units (RSUs) with a grant price of $0.
• These Restricted Stock Units are scheduled to vest three years after the grant date, on December 9, 2028.
• Awards also include 27,200 stock options with an exercise price of $23.63.
• The stock options will vest in four equal annual installments, with the first installment vesting on December 9, 2026, and have an expiration date of December 9, 2035.
• Following these transactions, Lilly directly beneficially owns 20,028.008 shares of common stock and 27,200 stock options.
• Indirect beneficial ownership includes 7,858.911 shares in a 401(k) Plan, 1,577.58 shares in a JEPST Plan, and 700 shares in a Spouse 401(k) Plan.

Sentiment

Score: 7

Explanation: The filing reports routine executive compensation in the form of equity awards, which is generally a neutral to slightly positive event as it aligns management incentives with shareholder interests. No negative implications are present.

Positives

• The grant of equity awards aligns management's long-term interests with those of shareholders, incentivizing sustained performance.
• Restricted Stock Units (RSUs) and stock options serve as key components of executive compensation, designed for retention and motivation.

Risks

• Risk of forfeiture of unvested Restricted Stock Units and stock options if employment with Hormel Foods Corporation ceases before the respective vesting dates.

Future Outlook

The equity awards are designed to incentivize long-term performance and retention of the Senior Vice President, aligning future executive performance with shareholder value creation over the vesting periods.

Management Comments

• Awards were granted pursuant to the Hormel Foods Corporation 2018 Incentive Compensation Plan.

Industry Context

Executive equity compensation, including restricted stock units and stock options, is a standard practice across the consumer packaged goods industry and broader corporate landscape to attract, retain, and motivate key executives by linking their compensation to company performance and shareholder returns.

Comparison to Industry Standards

• The structure of these equity awards, involving both restricted stock units with a three-year cliff vest and stock options with multi-year annual vesting, is consistent with common executive compensation practices seen in peer companies within the food and beverage sector, such as Tyson Foods, Conagra Brands, or General Mills, which utilize similar long-term incentive plans to align executive interests with long-term shareholder value.

Stakeholder Impact

• Shareholders: Potential positive impact through increased alignment of executive interests with long-term company performance.
• Employees: No direct impact on general employees, but reflects standard executive compensation practices.

Next Steps

• Continued employment of Pierre M. Lilly to ensure vesting of equity awards.
• Hormel Foods Corporation will continue to operate under its 2018 Incentive Compensation Plan.

Key Dates

Recommendation

This Form 4 filing reports routine executive compensation in the form of equity awards. While these awards align management incentives with shareholder interests, they do not present new fundamental information about the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. The transaction is a standard part of executive compensation plans.

Keywords

Hormel Foods, HRL, SEC Form 4, Insider Transaction, Equity Award, Restricted Stock Units, Stock Options, Executive Compensation, Pierre M. Lilly