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

Kristen Actis-Grande, EVP & Chief Financial Officer of MSC Industrial Direct Co., Inc., reports the vesting of restricted stock units and associated tax withholding.

Summary

• On November 3, 2024, Kristen Actis-Grande, EVP & Chief Financial Officer of MSC Industrial Direct Co., Inc., had 2,108 Restricted Stock Units (RSUs) vest.
• She also had 76.837 dividend equivalent units vest.
• The vested RSUs and dividend equivalent units convert into Class A Common Stock.
• A total of 633.837 shares of Class A Common Stock were disposed of to cover tax withholding obligations at a price of $80.7 per share.
• Following these transactions, Actis-Grande directly owns 6,818 shares of Class A Common Stock and 6,328 Restricted Stock Units.
• Future vesting dates for the remaining RSUs are November 3, 2025 (2,108 RSUs), November 3, 2026 (2,110 RSUs), and November 3, 2027 (2,110 RSUs), contingent upon continued employment.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices. The vesting of RSUs is a positive sign, but the tax withholding is a neutral event. Overall, the sentiment is moderately positive.

Positives

• The vesting of RSUs indicates a form of compensation and alignment of the executive's interests with the company's performance.

Negatives

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

Risks

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

Future Outlook

Future RSU vesting is contingent upon continued employment through the vesting dates in 2025, 2026 and 2027.

Industry Context

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

Comparison to Industry Standards

• Executive compensation packages, including RSUs, are common across publicly traded companies like MSC Industrial Direct.
• Companies such as Fastenal, Grainger, and Lawson Products also utilize similar compensation strategies to incentivize their executives.
• The vesting schedules and amounts are generally determined by company performance, industry benchmarks, and individual contributions.

Stakeholder Impact

• Shareholders may view the vesting of RSUs as a positive sign, indicating alignment of executive interests with company performance.
• Employees may see this as a standard part of the compensation package.

Key Dates