Form 4: Patrick Industries SVP Finance Acquires Stock Options and Appreciation Rights

Matthew S. Filer, SVP Finance/CAO of Patrick Industries, reports the acquisition of stock options and stock appreciation rights.

Summary

• Matthew S. Filer, the SVP Finance/CAO of Patrick Industries, filed a Form 4 detailing changes in beneficial ownership.
• On February 25, 2025, Filer acquired 5,060 stock options with an exercise price of $92.72.
• These options vest at a rate of 25% per year starting February 25, 2026.
• Filer also acquired multiple tranches of stock appreciation rights (SARs) on the same date.
• Each tranche consists of 1,265 SARs with exercise prices of $92.72, $110.76, $132.31, and $158.05 respectively.
• These SARs also vest at a rate of 25% per year starting February 25, 2026.
• The expiration date for all options and SARs is February 25, 2034.
• Following these transactions, Filer directly owns 5,060 stock options and 1,265 SARs in each of the four tranches.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine filing related to executive compensation. The acquisition of stock options and SARs is generally viewed as a positive sign, aligning management's interests with shareholders, but it's not a major event.

Positives

• The acquisition of stock options and SARs 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 specific forward-looking statements, but the vesting schedule suggests an expectation of continued employment and company performance.

Industry Context

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders. The acquisition of stock options and SARs is a common method of executive compensation, aligning management's interests with those of shareholders.

Comparison to Industry Standards

• Stock option and SAR grants are standard practice for companies like Patrick Industries to incentivize executives.
• Vesting schedules of 25% per year over four years are typical in the industry.
• Comparing the size of the grant to similar companies in the building products or recreational vehicle industries would provide further context.

Stakeholder Impact

• Shareholders may view the acquisition of stock options and SARs positively, as it aligns management's interests with the company's long-term success.
• Employees may see this as a positive sign of the company's commitment to its executives.

Key Dates