Form 4: Patrick Industries EVP Operations & COO Acquires Stock Options and Appreciation Rights

Hugo E. Gonzalez, EVP Operations & COO of Patrick Industries, reports the acquisition of stock options and stock appreciation rights.

Summary

• Hugo E. Gonzalez, the EVP Operations & COO of Patrick Industries, filed a Form 4 on February 27, 2025, reporting transactions related to derivative securities.
• On February 25, 2025, Gonzalez acquired 29,530 stock options with an exercise price of $92.72, which become exercisable at 25% per year starting February 25, 2026.
• Additionally, he acquired stock appreciation rights (SARs) at prices of $92.72, $110.76, $132.31, and $158.05, each for 7,382 or 7,383 shares, also vesting at 25% per year from February 25, 2026.
• These SARs are based on common stock and have a value of $0 at the time of acquisition.

Sentiment

Score: 6

Explanation: The sentiment is neutral as it reflects a standard executive compensation practice. It's neither particularly positive nor negative from an investment perspective.

Positives

• The acquisition of stock options and appreciation rights aligns the executive's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the executive.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

Industry Context

This filing is a routine disclosure of executive compensation in the form of stock options and appreciation rights, common in publicly traded companies to incentivize performance and align executive interests with shareholder value.

Comparison to Industry Standards

• Stock option and stock appreciation rights grants are a common component of executive compensation packages in the manufacturing industry, similar to companies like Thor Industries and Winnebago Industries.
• The vesting schedule of 25% per year over four years is a standard practice to ensure executive retention and long-term commitment.

Stakeholder Impact

• The granting of stock options and appreciation rights can positively impact shareholders by aligning management's interests with increasing shareholder value.
• Employees may view this as a positive sign of investment in the company's leadership.

Key Dates