Form 4: Mayville Engineering CEO Reddy Reports Future Stock Vesting and Tax-Related Share Disposition Under 10b5-1 Plan

Mayville Engineering Company, Inc. President & CEO Jagadeesh A. Reddy reported future transactions involving the vesting of restricted stock units and a subsequent disposition of shares for tax purposes, alongside current beneficial ownership, executed under a Rule 10b5-1 plan.

Summary

• Jagadeesh A. Reddy, President & CEO and Director of Mayville Engineering Company, Inc. (MEC), reported changes in beneficial ownership.
• On July 19, 2025, pursuant to a Rule 10b5-1 plan, 32,051 shares of Common Stock were acquired upon the vesting of restricted stock units at a price of $0.00.
• Concurrently on July 19, 2025, 15,064 shares of Common Stock were disposed of at $15.30 per share to cover tax liabilities related to the vesting.
• Following these transactions, Reddy directly owns 138,785 shares of Common Stock.
• Indirect beneficial ownership includes 2,300 shares via ESOP and/or 401(k) Plan and 380 shares by a daughter.
• Reddy holds 72,633 unvested Restricted Stock Units (RSUs) which will vest 1/3 on March 15, 2025, 2026, and 2027.
• Reddy holds an additional 82,927 unvested RSUs which will vest 1/3 on March 15, 2026, 2027, and 2028.
• Reddy also holds 88,901 Stock Options with an exercise price of $16.22, which will vest 50% on February 28, 2024, and February 28, 2025, and expire on February 28, 2033.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. While there's a disposition of shares, it's for tax purposes related to the vesting of equity awards, which is a routine event. The executive continues to hold a substantial number of shares directly and indirectly, along with significant unvested equity, indicating continued alignment with shareholder interests.

Positives

• Acquisition of 32,051 shares of Common Stock through the vesting of restricted stock units, increasing direct ownership before tax-related disposition.
• Significant unvested equity holdings (RSUs and stock options) align management's interests with long-term shareholder value.

Negatives

• Disposition of 15,064 shares of Common Stock to cover tax liabilities, reducing the net increase in direct beneficial ownership from the RSU vesting.

Future Outlook

The filing details future vesting schedules for a significant number of restricted stock units and stock options held by the President & CEO, including a transaction on July 19, 2025, executed under a Rule 10b5-1 plan, indicating future potential increases in beneficial ownership and continued alignment with long-term company performance.

Industry Context

This Form 4 filing provides specific details on an executive's equity compensation and ownership, which is a standard disclosure in all industries for publicly traded companies. It does not, however, offer insights into broader industry trends or competitive dynamics.

Related Party Transactions

• Indirect beneficial ownership of 380 shares by the reporting person's daughter.

Stakeholder Impact

• Shareholders: The report provides transparency into executive stock ownership and compensation, which can influence investor confidence and perception of management alignment.
• Employees: The report details equity compensation, which is a component of executive remuneration and may indirectly reflect on broader company compensation strategies.

Next Steps

• Future vesting of 72,633 Restricted Stock Units on March 15, 2025, 2026, and 2027.
• Future vesting of 82,927 Restricted Stock Units on March 15, 2026, 2027, and 2028.
• Future vesting of 88,901 Stock Options on February 28, 2024, and February 28, 2025.

Key Dates

Keywords

Mayville Engineering Company, MEC, SEC Form 4, Insider Trading, Stock Ownership, Restricted Stock Units, Stock Options, Executive Compensation, Jagadeesh A. Reddy, Beneficial Ownership, Rule 10b5-1 Plan