Form 4: PC Connection Inc. CEO Timothy McGrath Reports Stock Transactions
SEC Form 4
Timothy McGrath, President & CEO of PC Connection Inc., reports the vesting and conversion of restricted stock units into common stock, along with the withholding of shares to cover tax obligations.
Summary
- On September 1, 2024, Timothy McGrath, the President & CEO of PC Connection Inc., had 12,000 restricted stock units vest and convert into common stock.
- Additionally, 8,000 restricted stock units vested and converted into common stock on the same date.
- McGrath also disposed of 4,722 and 3,148 shares of common stock to satisfy tax withholding obligations at a price of $73.08 per share.
- Following these transactions, McGrath directly owns 275,198 shares of PC Connection Inc. common stock and 8,000 restricted stock units.
Sentiment
Score: 5
Explanation: This is a routine transaction report, so the sentiment is neutral. It reflects standard executive compensation practices.
Future Outlook
The remaining restricted stock units are scheduled to vest on September 1, 2025, September 1, 2026 and September 1, 2027.
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 transactions in the company's stock.
Comparison to Industry Standards
- Executive compensation packages often include restricted stock units that vest over time, aligning executive incentives with long-term shareholder value.
- The vesting schedules and tax withholding practices are standard across publicly traded companies.
- Comparable companies such as Insight Enterprises and CDW Corporation also have executives who regularly report similar transactions.
Stakeholder Impact
- The transactions have a minor impact on shareholders as they reflect the standard vesting of executive compensation.
- Employees may view this as a positive sign of executive commitment to the company.
Key Dates
| Date | Description |
|---|---|
| October 30, 2014 | Restricted stock units were granted under the PC Connection, Inc. Amended and Restated 2007 Stock Incentive Plan. |
| March 1, 2016 | Restricted stock units were granted under the PC Connection, Inc. Amended and Restated 2007 Stock Incentive Plan. |
| September 1, 2024 | 12,000 and 8,000 restricted stock units vested and converted into common stock; shares were disposed of to cover tax obligations. |
| September 1, 2025 | 7,000 and 8,000 shares are scheduled to vest. |
| September 1, 2026 | 10,000 shares are scheduled to vest. |
| September 1, 2027 | 5,000 shares are scheduled to vest. |
| September 3, 2024 | Date of signature for the Form 4 filing. |
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