Form 4: MSC Industrial Direct CFO Kristen Actis-Grande Reports Stock Transactions

Kristen Actis-Grande, EVP & Chief Financial Officer of MSC Industrial Direct Co., Inc., reported transactions involving Class A Common Stock, including acquisitions from vesting of performance share units and restricted stock units, as well as dispositions to cover tax obligations.

Summary

• On November 5, 2024, Kristen Actis-Grande, the EVP & Chief Financial Officer of MSC Industrial Direct Co., Inc., engaged in several transactions involving the company's Class A Common Stock.
• These transactions included the acquisition of 3,825 shares from the vesting of performance share units (PSUs) and 437.815 shares from dividend equivalent units.
• Additionally, 956 shares were acquired from restricted stock units (RSUs) and 109.425 shares from dividend equivalent units.
• Actis-Grande also disposed of 1,234.815 shares and 309.425 shares to cover tax withholding obligations related to the vesting of PSUs and RSUs/DEUs, respectively.
• Following these transactions, Actis-Grande directly owns 11,468 shares of Class A Common Stock.
• She also holds 957 restricted stock units that will vest on November 5, 2025, contingent upon continued employment.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transactions are routine and reflect standard executive compensation practices. There's no indication of unusual activity or concern.

Positives

• The vesting of performance share units and restricted stock units indicates that performance targets have been met, which is a positive signal.

Negatives

• The disposition of shares to cover tax obligations, while standard, slightly reduces the executive's holdings.

Risks

• Future vesting of RSUs is contingent upon continued employment, introducing a potential risk if the executive were to leave the company.

Future Outlook

957 RSUs are scheduled to vest on November 5, 2025, provided that the Reporting Person remains continuously employed by the Issuer through each applicable vesting date.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. These filings are closely watched by investors to gauge management's sentiment and alignment with shareholder interests.

Comparison to Industry Standards

• Executive compensation packages often include stock options, restricted stock units, and performance share units to align management's interests with those of shareholders.
• The vesting schedules and performance criteria for these awards are typically benchmarked against industry peers to ensure competitiveness and effectiveness.
• Companies like Fastenal, Grainger, and Lawson Products also utilize similar equity-based compensation strategies for their executives.

Stakeholder Impact

• The transactions have a minor impact on shareholders, as they reflect standard executive compensation practices and do not signal any significant change in management's outlook.

Key Dates