Form 4: Jabil SVP Acquires RSUs, Adjusts Holdings

Jabil's SVP, CHRO, Gary K. Schick, reported new RSU grants and tax-related share dispositions, adjusting his direct beneficial ownership.

Summary

• Gary K. Schick, SVP, CHRO of Jabil Inc., reported several transactions on October 16, 2025.
• Acquired 3,580 shares of Common Stock through time-based Restricted Stock Units (RSUs) under the 2021 Equity Incentive Plan. These RSUs vest 30% on the first anniversary, 30% on the second, and 40% on the third anniversary of the grant date (October 16, 2025).
• Acquired two separate grants of 3,580 shares each (total 7,160 shares) of Common Stock through performance-based RSUs under the 2021 Equity Incentive Plan. These RSUs vest based on the achievement of certain performance criteria over a three-year period from September 1, 2025, to August 31, 2028, with the reported amount representing the maximum potential shares.
• Disposed of 113 shares of Common Stock related to performance-based RSUs originally granted on October 20, 2022, which were certified on October 16, 2025, as not having met maximum performance metrics.
• Disposed of 247 shares and 366 shares (total 613 shares) of Common Stock at a price of $206.88 per share to cover tax liabilities associated with vesting events.
• Following these transactions, direct beneficial ownership stands at 43,848 shares of Common Stock.

Sentiment

Score: 7

Explanation: The filing indicates routine executive compensation activities, including new equity grants which are generally positive for aligning management with shareholder interests. The slight underperformance on a past RSU grant is a minor negative but not indicative of broader company issues.

Positives

• Grant of new time-based Restricted Stock Units (RSUs) totaling 3,580 shares, aligning executive interests with long-term company performance and retention.
• Grant of new performance-based Restricted Stock Units (RSUs) totaling 7,160 shares (maximum potential), incentivizing the achievement of strategic goals over the next three years (September 1, 2025, to August 31, 2028).

Negatives

• Disposition of 113 shares due to performance-based RSUs from a 2022 grant not achieving maximum metrics, indicating some targets were not fully met.
• Disposition of 613 shares to cover tax obligations, which is a common practice but reduces direct ownership.

Risks

• The vesting of performance-based RSUs is contingent on achieving specific criteria, meaning the full potential share grant may not be realized if targets are not met.
• Future fluctuations in Jabil Inc.'s share price could impact the value of the unvested RSUs and the shares currently held by the reporting person.

Future Outlook

The new RSU grants, both time-based and performance-based, indicate a continued focus on long-term executive incentives tied to future company performance and share price appreciation. The performance-based RSUs are tied to criteria over a three-year period ending August 31, 2028, suggesting strategic objectives for that timeframe.

Industry Context

Executive equity grants, particularly a mix of time-based and performance-based Restricted Stock Units (RSUs), are standard practice across the technology manufacturing and services industry. This structure aims to align executive incentives with shareholder value creation and long-term strategic objectives, common among Jabil's peers in the electronics manufacturing services (EMS) sector.

Comparison to Industry Standards

• The use of both time-based and performance-based RSUs is a common compensation strategy in the EMS industry, similar to practices at companies like Flex Ltd. or Celestica Inc.
• The specific vesting schedules (e.g., 30/30/40 for time-based) and three-year performance periods are within typical industry benchmarks for executive long-term incentive plans.
• The disposition of shares for tax withholding is also a standard practice upon RSU vesting across all industries.

Stakeholder Impact

• Shareholders: Executive equity grants align management incentives with shareholder value. The disposition of shares for tax purposes is a routine event.
• Employees: No direct impact on general employees, but reflects the company's executive compensation strategy.

Next Steps

• Continued vesting of time-based RSUs on the first, second, and third anniversaries of October 16, 2025.
• Evaluation of performance-based criteria for new RSUs over the period ending August 31, 2028.
• Future Form 4 filings will report subsequent vesting events and any further transactions by the reporting person.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions related to executive compensation, specifically RSU grants and tax-related share dispositions. It does not contain information that would fundamentally alter the investment thesis for Jabil Inc. The grants align executive interests with long-term performance, which is generally positive, but the overall impact on the stock's valuation or future prospects is neutral. Therefore, a 'hold' recommendation is appropriate as the filing provides no new material information to warrant a change in investment stance.

Keywords

Jabil Inc., JBL, SEC Form 4, Restricted Stock Units, RSUs, Executive Compensation, Insider Trading, Stock Ownership, Performance-based Equity, Time-based Equity