Form 4: Lennox EVP Acquires Shares, Stock Appreciation Rights

Lennox International Inc.'s EVP & President of Home Comfort Solutions, Sarah Rachel Martin, acquired 708 shares of common stock and 1,705 stock appreciation rights.

Summary

• Sarah Rachel Martin, Executive Vice President & President, Home Comfort Solutions for Lennox International Inc. (LII), reported an acquisition of securities on February 2, 2026.
• Acquired 708 shares of Common Stock, Par Value $0.01 Per Share, at a price of $0.00 per share.
• Following this transaction, Ms. Martin beneficially owns 2,355 shares of Common Stock directly.
• Acquired 1,705 Non-qualified Stock Appreciation Rights (SARs) at a price of $0.00 per SAR.
• The SARs have an exercise price of $493.09.
• One-third of the SARs will become exercisable on February 2, 2027, with the entire grant fully exercisable by February 2, 2029.
• The Stock Appreciation Rights are set to expire on February 2, 2033.
• Ms. Martin beneficially owns 1,705 SARs directly after this transaction.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, as it indicates increased executive alignment with shareholder interests through equity ownership and long-term incentives.

Positives

• Executive acquisition of common stock and stock appreciation rights aligns management interests with shareholders.
• The acquisition of 708 shares of common stock at a $0 price suggests a grant, likely as part of compensation, increasing the executive's direct equity stake.
• The grant of 1,705 Stock Appreciation Rights (SARs) provides a long-term incentive for the executive to increase shareholder value, as SARs become more valuable with an increase in the company's stock price above the exercise price of $493.09.

Future Outlook

The Stock Appreciation Rights will vest in tranches, with one-third becoming exercisable on February 2, 2027, and fully exercisable by February 2, 2029, providing a multi-year incentive for the executive.

Industry Context

StockSavvy.ai notes that the granting of equity and equity-linked incentives like Stock Appreciation Rights is a standard practice across various industries, particularly in manufacturing and industrial sectors, to align executive performance with shareholder returns. This type of compensation structure is common for companies like Lennox International Inc. to retain key talent and motivate long-term value creation.

Comparison to Industry Standards

• The use of Stock Appreciation Rights (SARs) as part of executive compensation is a common practice, comparable to similar programs at industrial peers such as Carrier Global Corporation (CARR) or Trane Technologies plc (TT).
• These companies frequently utilize a mix of restricted stock units (RSUs), performance share units (PSUs), and SARs/options to incentivize executives.
• The vesting schedule, with a multi-year exercisability period, is also typical for long-term incentive plans designed to encourage sustained performance.

Related Party Transactions

• The acquisition of common stock and Stock Appreciation Rights by an executive is a form of compensation, which can be considered a related party transaction.

Stakeholder Impact

• Shareholders: Potentially positive, as increased executive equity ownership and long-term incentives align management's financial interests with shareholder value creation.

Next Steps

• One-third of the Stock Appreciation Rights will become exercisable on February 2, 2027.
• The remaining tranches of Stock Appreciation Rights will become exercisable annually thereafter until fully exercisable on February 2, 2029.

Key Dates

Keywords

Lennox International Inc., LII, Form 4, Insider Transaction, Executive Compensation, Stock Appreciation Rights, Common Stock, Equity Grant, Sarah Rachel Martin