Form 4: Lear Corp SVP Kemp Reports RSU Vesting, New Grant

Lear Corp's SVP & Chief Admin Officer, Harry Albert Kemp, reported the vesting of 4,254 restricted stock units, a tax-related share withholding, and a new grant of 7,102 restricted stock units.

Summary

• Harry Albert Kemp, SVP & Chief Admin Officer of Lear Corp (LEA), reported several transactions related to his equity holdings.
• On January 4, 2026, 4,254 restricted stock units (granted on January 3, 2023) vested and were settled into common stock.
• Concurrently, 1,937 shares of common stock were withheld by the company at a price of $118.61 per share to satisfy tax withholding requirements related to the RSU vesting.
• Following these transactions, Kemp beneficially owns 17,594 shares of common stock.
• On January 2, 2026, Kemp was granted an additional 7,102 restricted stock units.
• These newly granted restricted stock units will vest in three equal annual installments: one-third on January 4, 2027, one-third on January 4, 2028, and the final one-third on January 4, 2029.

Sentiment

Score: 6

Explanation: The filing reports routine executive compensation events, including both vesting of existing awards and a new grant. While there's a disposition for tax purposes, the overall activity reflects ongoing executive incentive alignment, which is generally neutral to slightly positive.

Positives

• Grant of 7,102 new Restricted Stock Units to Harry Albert Kemp, indicating continued long-term incentive compensation.
• Vesting of 4,254 Restricted Stock Units, converting into common stock, increasing direct ownership.

Negatives

• 1,937 shares of common stock were disposed of at $118.61 to cover tax withholding obligations, reducing the net shares received from the vesting event.

Future Outlook

NA

Industry Context

This filing represents a routine insider transaction related to executive compensation, common across publicly traded companies in the automotive supplier industry. It does not provide specific insights into broader industry trends or competitive positioning.

Comparison to Industry Standards

• The RSU grant and vesting structure are standard practices for executive compensation in large automotive component manufacturers like Lear Corp.
• Similar equity incentive programs are observed at competitors such as Adient plc, Magna International Inc., and Aptiv PLC, aiming to align executive interests with long-term shareholder value.

Related Party Transactions

• The reported transactions involve equity compensation between Lear Corp and its SVP & Chief Admin Officer, Harry Albert Kemp, which is a related party transaction by nature.

Stakeholder Impact

• Shareholders: Minor impact. The vesting and grant of RSUs are part of standard executive compensation, which can dilute existing shares over time but also aims to align management incentives with shareholder interests. The tax withholding reduces the number of shares entering the market from this specific vesting event.
• Employees: No direct impact on general employees, but it reflects the company's executive compensation practices.

Next Steps

• One-third of the 7,102 Restricted Stock Units granted on January 2, 2026, will vest on January 4, 2027.
• Another one-third of these RSUs will vest on January 4, 2028.
• The remaining one-third of these RSUs will vest on January 4, 2029.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation activities, specifically the vesting of restricted stock units, associated tax withholdings, and a new RSU grant. These are standard, pre-scheduled events and do not indicate any material change in the company's operational performance, financial health, or strategic direction. Therefore, based solely on this filing, a seasoned investor would likely maintain their current position, as there is no new information to warrant a change in investment thesis.

Keywords

Lear Corp, LEA, Form 4, Insider Transaction, Restricted Stock Units, RSU, Equity Compensation, Harry Albert Kemp, SVP, Chief Admin Officer, Stock Vesting, Tax Withholding