Form 4: PACCAR Inc. Executive Harrie Schippers Reports Stock Acquisition and Option Holdings

Harrie Schippers, President & CFO of PACCAR Inc., reports acquisition of common stock through dividend reinvestment and holdings of stock options and stock units.

Summary

• Harrie Schippers, the President & CFO of PACCAR Inc., filed a Form 4 detailing changes in beneficial ownership.
• On June 5, 2024, Schippers acquired 7.954 shares of common stock at $110.01 per share through a dividend reinvestment within the PACCAR Savings Investment Plan (SIP).
• Following this transaction, Schippers directly owns 105,558 shares of PACCAR common stock and indirectly owns 2,888.966 shares through the SIP.
• Schippers also holds various stock options with exercise prices ranging from $33.3333 to $104.16, exercisable between January 1, 2019, and January 1, 2027, and expiring between February 4, 2026, and February 5, 2034.
• Additionally, Schippers holds 23,922.5 stock units under the Long Term Incentive Plan (LTIP), which are convertible to common stock on a one-for-one basis upon vesting.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The filing reflects routine transactions and ongoing executive compensation, indicating stability and alignment of interests.

Positives

• The acquisition of shares through dividend reinvestment indicates confidence in the company's performance.
• The executive's significant holdings of stock options and stock units align their interests with those of the shareholders.

Industry Context

Executive stock ownership is a common practice in publicly traded companies to align management's interests with those of shareholders. Form 4 filings provide transparency into these ownership changes.

Comparison to Industry Standards

• Executive compensation packages typically include a mix of salary, stock options, and restricted stock units.
• The specific terms of PACCAR's stock options and LTIP units would need to be compared to those of peer companies like Daimler Truck Holding AG, Volvo Group, and Navistar International Corporation to assess their competitiveness.
• Dividend reinvestment plans are a common way for shareholders, including executives, to increase their ownership in a company.

Stakeholder Impact

• The reported transactions have a minor positive impact on shareholders by demonstrating the executive's continued investment in the company.
• Employees participating in the PACCAR Savings Investment Plan (SIP) also benefit from dividend reinvestment.

Key Dates