Form 4: Levi Strauss & Co. Executive Gianluca Flore Reports Acquisition of Restricted Stock Units and Stock Appreciation Rights

EVP & Chief Commercial Officer of Levi Strauss & Co., Gianluca Flore, reports the acquisition of restricted stock units and stock appreciation rights.

Summary

• On January 31, 2025, Gianluca Flore, EVP & Chief Commercial Officer of Levi Strauss & Co., reported acquiring 38,558 shares of Class A Common Stock in the form of restricted stock units (RSUs) and 115,674 stock appreciation rights.
• The RSUs vest in four equal installments of 25% on each of January 30, 2026, January 29, 2027, January 28, 2028 and January 26, 2029, subject to continuous service.
• Following the transaction, Flore beneficially owns 174,588 shares of Class A Common Stock directly.
• The stock appreciation rights have an exercise price of $19.03 and expire on January 30, 2035, vesting in four equal installments on the same dates as the RSUs.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. It reflects standard executive compensation practices, suggesting confidence in the company's future, but doesn't contain overtly positive or negative information.

Positives

• The acquisition of RSUs and stock appreciation rights suggests confidence in the company's future performance from the executive.

Risks

• The vesting of the RSUs and stock appreciation rights is contingent upon continuous service, meaning Flore must remain employed by Levi Strauss & Co. to fully realize their value.

Future Outlook

The document does not contain explicit forward-looking statements, but the vesting schedule of the RSUs and stock appreciation rights extends to 2029, indicating a long-term incentive for the executive.

Industry Context

Executive compensation in the form of stock options and restricted stock units is a common practice in publicly traded companies to align management's interests with those of shareholders.

Comparison to Industry Standards

• Levi Strauss & Co.'s executive compensation practices, including the use of RSUs and stock appreciation rights, are generally in line with industry standards for publicly traded companies of similar size and scope.
• Comparable companies in the apparel and retail sector, such as Nike, Gap, and PVH Corp., also utilize equity-based compensation to incentivize their executives.
• The vesting schedules and terms of these equity grants are typically structured to encourage long-term value creation and retention of key personnel.

Stakeholder Impact

• The equity grants align the executive's interests with those of shareholders, potentially driving long-term value creation.
• The vesting schedule incentivizes the executive to remain with the company, ensuring continuity in leadership.

Key Dates