Form 4: Lakeland Industries CFO Boosts Equity Stake Through Salary-for-Stock Election and RSU Grant

Lakeland Industries' Chief Financial Officer, Roger D. Shannon, increased his beneficial ownership by electing to receive a portion of his salary in company stock and receiving additional restricted stock units.

Summary

• Chief Financial Officer Roger D. Shannon was granted 699 shares of restricted stock on July 11, 2025, in lieu of $10,000 of his remaining fiscal year 2026 salary.
• The restricted stock was valued at $14.31 per share, which was the closing price of Lakeland Industries' common stock on the grant date.
• These 699 restricted shares are set to vest on July 11, 2026, provided the reporting person is not terminated for cause prior to that date.
• On the same date, 206 shares were withheld by Lakeland Industries to satisfy the reporting person's tax obligations related to the restricted stock grant, at a price of $14.31 per share.
• An additional 210 Restricted Stock Units (RSUs) were granted to the CFO, representing a 30% premium on the salary amount he elected to receive in stock.
• These RSUs were also valued at $14.31 per share and are scheduled to vest on July 11, 2026, contingent on the reporting person remaining in continuous service through the vesting date.
• Following these transactions, Roger D. Shannon's direct beneficial ownership of Lakeland Industries Common Stock stands at 46,092 shares.

Sentiment

Score: 7

Explanation: The CFO's decision to take salary in stock and the grant of additional RSUs demonstrate strong alignment of management's interests with shareholders and provide an incentive for continued performance, which is generally viewed positively.

Positives

• The Chief Financial Officer's election to receive a portion of his salary in company stock demonstrates strong alignment of management's interests with those of shareholders.
• The grant of Restricted Stock Units (RSUs) includes a 30% premium on the elected salary amount, serving as an additional incentive for the CFO's continued performance and commitment.
• Increased equity ownership by a key executive signals confidence in the company's future prospects.

Risks

• The vesting of both the restricted stock and Restricted Stock Units (RSUs) is contingent upon the CFO's continued employment and not being terminated for cause or remaining in continuous service through the vesting date (July 11, 2026).

Future Outlook

The future outlook involves the vesting of the granted restricted stock and Restricted Stock Units (RSUs) on July 11, 2026, contingent upon the CFO's continued employment and service to the company.

Management Comments

• The reporting person elected to receive $10,000 of his remaining fiscal year 2026 salary in the form of the Issuer's stock.
• These RSUs represent a 30% premium on the amount of salary the reporting person has elected to receive in lieu of cash.

Industry Context

This filing reflects a common practice in executive compensation within publicly traded companies, where equity-based incentives like restricted stock and RSUs are used to align the interests of management with those of shareholders and to encourage long-term retention and performance.

Comparison to Industry Standards

• Not applicable as this document is an insider transaction filing (Form 4) detailing executive compensation, rather than a financial performance report that would allow for direct comparisons to industry benchmarks or specific comparable companies' results.

Related Party Transactions

• Grant of 699 restricted stock shares and 210 Restricted Stock Units (RSUs) to Chief Financial Officer Roger D. Shannon as part of his compensation, including his election to receive a portion of his salary in company stock.

Stakeholder Impact

• Shareholders: The increased equity ownership by the Chief Financial Officer enhances the alignment of management's financial interests with those of the shareholders, potentially fostering greater long-term value creation.

Next Steps

• Vesting of the 699 restricted stock shares and 210 Restricted Stock Units (RSUs) on July 11, 2026, subject to continued employment conditions.

Key Dates

Keywords

Lakeland Industries, LAKE, Form 4, SEC filing, restricted stock, RSUs, executive compensation, insider ownership, CFO, Roger D. Shannon, equity compensation