Form 4: O'Reilly Automotive EVP Granted Stock Options
Insider Transaction Report
O'Reilly Automotive's EVP of Store Operations and Sales, Jason Lee Tarrant, reported the grant of 14,303 nonqualified employee stock options and updated his beneficial ownership.
Summary
- Jason Lee Tarrant, EVP Store Operations/Sales at O'Reilly Automotive Inc. (ORLY), reported beneficial ownership of 21,250 shares of common stock directly and 944 shares indirectly through the company's 401k plan.
- Tarrant was granted 14,303 nonqualified employee stock options on January 29, 2026, with an exercise price of $98.85 per share.
- These options will vest in four equal annual installments, beginning on January 29, 2027, and have an expiration date of January 29, 2036.
Sentiment
Score: 7
Explanation: StockSavvy.ai views this as a moderately positive development, indicating continued executive alignment with shareholder interests through equity compensation.
Positives
- The grant of 14,303 nonqualified employee stock options to a key executive aligns management's interests with long-term shareholder value.
- The executive's continued direct and indirect beneficial ownership of common stock (21,250 direct, 944 indirect) demonstrates ongoing commitment to the company.
Future Outlook
The vesting schedule for the granted stock options, commencing on January 29, 2027, and continuing in four equal annual installments, indicates a long-term incentive structure for the EVP of Store Operations and Sales.
Industry Context
StockSavvy.ai notes that executive stock option grants are a common form of incentive compensation in the retail automotive parts industry, aligning management interests with shareholder value and encouraging long-term performance.
Comparison to Industry Standards
- StockSavvy.ai observes that granting nonqualified stock options with a multi-year vesting schedule is a standard practice for executive compensation across various industries, including automotive retail.
- This approach is consistent with compensation strategies seen at comparable companies like AutoZone (AZO) and Advance Auto Parts (AAP), aiming to incentivize executives for sustained company growth and profitability.
Related Party Transactions
- The grant of nonqualified employee stock options to Jason Lee Tarrant, an executive officer, constitutes a related party transaction as it involves compensation from the company to a key management personnel.
Stakeholder Impact
- Shareholders: The grant of stock options aligns the executive's financial interests with long-term shareholder value, potentially leading to improved company performance.
Next Steps
- Vesting of 14,303 nonqualified employee stock options in four equal annual installments, beginning January 29, 2027.
Key Dates
| Date | Description |
|---|---|
| 01/29/2026 | Date of grant for 14,303 nonqualified employee stock options. |
| 02/02/2026 | Signature date of the reporting person on the Form 4 filing. |
| 01/29/2027 | Date when the first of four equal annual installments of the stock options begin to vest. |
| 01/29/2036 | Expiration date of the nonqualified employee stock options. |
Keywords
O'Reilly Automotive, ORLY, SEC Form 4, Stock Options, Insider Transaction, Beneficial Ownership, Executive Compensation, Jason Lee Tarrant
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