Form 4: Patrick Industries Executive Hugo Gonzalez Reports Stock Transactions

Executive Vice President and COO of Patrick Industries, Hugo Gonzalez, reports the acquisition and disposal of company stock related to performance-based and time-based grants.

Summary

• Hugo Gonzalez, EVP Operations & COO of Patrick Industries, reported several transactions involving the company's common stock on January 28, 2025.
• He disposed of 2,036 shares at $96.01 per share to cover tax obligations related to a performance-based stock grant from January 2022.
• He acquired 8,333 shares as part of a performance-based grant that vests after three years upon achievement of company objectives.
• Additionally, he acquired 2,083 shares as part of an annual management time-based grant that will vest in January 2028.
• Following these transactions, Mr. Gonzalez beneficially owns 43,629 shares of Patrick Industries common stock.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and routine stock transactions. There are no significant positive or negative implications.

Positives

• The acquisition of 8,333 performance-based shares indicates a potential alignment of executive compensation with company performance.
• The acquisition of 2,083 time-based shares suggests continued commitment from the executive.

Negatives

• The disposal of 2,036 shares, while for tax purposes, could be perceived as a slight reduction in the executive's direct stake.

Risks

• The vesting of performance-based shares is contingent on the achievement of target company objectives, which introduces a degree of uncertainty.
• The value of the shares is subject to market fluctuations, which could impact the overall value of the executive's holdings.

Future Outlook

The performance-based grants will vest after three years upon achievement of target company objectives, and the time-based grant will vest in January 2028.

Industry Context

This filing is a routine disclosure of stock transactions by a company executive, which is common in publicly traded companies. It provides transparency into the executive's holdings and compensation structure.

Comparison to Industry Standards

• Stock-based compensation is a common practice among publicly traded companies to align executive interests with shareholder value.
• The vesting periods of three years for performance-based grants and time-based grants are typical in the industry.
• The reporting of these transactions via SEC Form 4 is a standard regulatory requirement for company insiders.

Stakeholder Impact

• The transactions provide transparency to shareholders regarding executive compensation and ownership.
• The vesting of performance-based shares aligns executive interests with company performance, which can be beneficial for shareholders.

Key Dates

Keywords

Patrick Industries, Stock Transactions, Executive Compensation, Performance-Based Grant, Time-Based Grant, Form 4, Insider Trading, Hugo Gonzalez