Form 4: Methode Electronics CEO Disposes Shares for Tax Obligations

Jonathan B. DeGaynor, CEO and President of Methode Electronics Inc., disposed of 7,986 shares of common stock at $6.48 per share to cover tax obligations related to restricted stock unit vesting.

Summary

• Jonathan B. DeGaynor, CEO and President, and a Director of Methode Electronics Inc. (MEI), reported a transaction on July 15, 2025.
• The transaction involved the disposition of 7,986 shares of Common Stock at a price of $6.48 per share.
• This disposition was coded 'F', indicating shares were withheld to satisfy the reporting person's tax obligations associated with the vesting of restricted stock units.
• Following this transaction, Mr. DeGaynor directly beneficially owns 107,705 shares of Common Stock.
• Additionally, he indirectly beneficially owns 32,733 shares in a joint account with his spouse and 1,984 shares held in the Methode 401(k) Plan, totaling 142,422 shares beneficially owned.

Sentiment

Score: 6

Explanation: The transaction represents a routine tax withholding upon the vesting of restricted stock units, which is a positive event for the executive, though the share disposal itself is neutral. The future transaction date is an unusual aspect but is noted as a pre-planned event.

Positives

• The underlying event for the share disposition is the vesting of restricted stock units, which represents a positive compensation event for the executive.

Negatives

• The transaction involves a reduction in the direct beneficial ownership of common stock by the CEO, although it is for tax purposes.

Risks

• The transaction date of July 15, 2025, is in the future, which is unusual for a Form 4 filing that typically reports past events. While the filing indicates it's pursuant to a Rule 10b5-1(c) plan, this future date may require clarification regarding its execution or reporting accuracy.

Future Outlook

The document does not provide any forward-looking statements or guidance beyond the details of the reported transaction.

Industry Context

This is a company-specific insider transaction related to executive compensation. It does not directly reflect broader industry trends but is a common mechanism for managing equity-based compensation for executives across various industries.

Comparison to Industry Standards

• The practice of withholding shares to cover tax obligations upon the vesting of restricted stock units is a standard and widely accepted method of managing equity compensation for executives across publicly traded companies, aligning with common industry benchmarks for executive compensation and tax compliance.

Related Party Transactions

• The disposition of shares to satisfy tax obligations related to restricted stock unit vesting is a transaction between the executive and the company, which is a common form of related party dealing in the context of executive compensation.

Stakeholder Impact

• Minimal direct impact on shareholders as it is a routine tax-related transaction associated with executive compensation, not a discretionary sale or purchase that would signal a change in management's confidence or strategy.

Key Dates

Keywords

Methode Electronics, MEI, Form 4, Insider Transaction, Jonathan B. DeGaynor, CEO, Restricted Stock Units, Tax Withholding, Share Disposal, Corporate Governance