Form 4: Jabil Executive Receives New Equity Awards

Jabil's SVP, Chief Procurement Officer, Francis McKay, reported new restricted stock unit grants and tax-related share dispositions.

Summary

• Francis McKay, SVP, Chief Procurement Officer of Jabil Inc., reported several equity transactions on October 16, 2025.
• Received 3,580 Restricted Stock Units (RSUs) that will vest over three years, with 30% vesting on the first anniversary, 30% on the second, and 40% on the third anniversary of the October 16, 2025 grant date.
• Received two separate grants of 3,580 performance-based RSUs each, totaling 7,160 units. These units vest based on the achievement of specific performance criteria during the three-year period from September 1, 2025, to August 31, 2028. The reported numbers represent the maximum potential shares if performance targets are met.
• Disposed of 440 performance-based RSUs from an original grant on October 20, 2022. These units were certified on October 16, 2025, as having satisfied performance metrics, but not at their maximum potential.
• Disposed of a total of 3,138 shares of common stock (1,557 shares and 1,581 shares) at a price of $206.88 per share to cover tax withholding obligations related to RSU vesting.
• Following these transactions, Francis McKay's direct beneficial ownership in Jabil Inc. common stock stands at 45,274 shares.

Sentiment

Score: 7

Explanation: The filing reflects routine executive compensation through equity awards, aligning management interests with shareholders. The dispositions are primarily for tax obligations, which is standard practice, with a minor negative note on a prior performance award not reaching maximum.

Positives

• The grant of 10,740 new Restricted Stock Units (RSUs) aligns executive compensation with shareholder interests, incentivizing long-term performance.
• The inclusion of both time-based and performance-based RSUs provides a balanced incentive structure for the executive.

Negatives

• 440 performance-based Restricted Stock Units from a prior grant (October 20, 2022) did not vest at their maximum potential, indicating that specific performance targets for that award were not fully achieved.
• Disposed of 3,138 shares of common stock at $206.88 per share to satisfy tax withholding obligations, which reduces the executive's direct equity stake.

Future Outlook

The newly granted time-based Restricted Stock Units will vest in tranches over three years, starting October 16, 2026. The performance-based Restricted Stock Units will vest based on the achievement of specific criteria over a period ending August 31, 2028.

Industry Context

The reported equity awards are a standard component of executive compensation packages in the technology manufacturing and supply chain solutions industry, designed to attract, retain, and motivate key personnel by aligning their interests with long-term company performance.

Comparison to Industry Standards

• The structure of equity awards, including both time-based and performance-based Restricted Stock Units, aligns with common executive compensation practices observed across the technology manufacturing and supply chain solutions industry.
• The disposition of shares for tax withholding is a standard mechanism for settling equity awards and is consistent with practices at comparable companies.
• The certification of performance-based RSUs not at maximum, leading to a forfeiture of 440 units, reflects the application of pre-defined performance metrics, a common feature in incentive plans designed to link executive pay to company performance.

Stakeholder Impact

• Shareholders: Increased alignment of executive incentives with long-term company performance through equity ownership.
• Employees: Reflects standard executive compensation practices within the company.

Next Steps

• Vesting of time-based RSUs on the first, second, and third anniversaries of October 16, 2025.
• Assessment and potential vesting of performance-based RSUs based on criteria achieved during the period ending August 31, 2028.

Key Dates

Recommendation

This Form 4 details routine executive equity compensation and tax-related share dispositions. It does not provide new information that would alter the fundamental investment thesis for Jabil Inc., thus a 'hold' recommendation remains appropriate based solely on this filing.

Keywords

Jabil, JBL, Form 4, Insider Transaction, Restricted Stock Units, RSU, Equity Award, Executive Compensation, Francis McKay, Chief Procurement Officer