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 of restricted stock units and subsequent sale of shares to cover tax obligations.
Summary
- On April 1, 2025, Timothy McGrath, the President & CEO of PC Connection Inc. (CNXN), had 10,000 restricted stock units vest, which converted into common stock on a one-for-one basis.
- Following the vesting, McGrath disposed of 3,935 shares of common stock at a price of $63.10 to cover tax obligations.
- After these transactions, McGrath directly owns 299,457 shares of PC Connection Inc. common stock and 20,000 restricted stock units.
Sentiment
Score: 5
Explanation: This is a neutral disclosure of stock transactions. It doesn't inherently indicate positive or negative sentiment about the company's performance.
Future Outlook
The remaining 20,000 restricted stock units are scheduled to vest in increments of 10,000 shares each year on April 1 through 2027.
Industry Context
This Form 4 filing is a routine disclosure of insider transactions, which are common for executives who receive stock-based compensation. It provides transparency into the trading activities of company insiders.
Comparison to Industry Standards
- Executive compensation packages often include restricted stock units that vest over time, aligning executive interests with long-term shareholder value.
- The sale of shares to cover tax obligations upon vesting is a standard practice among executives receiving stock-based compensation.
- Comparing McGrath's holdings and transactions to those of executives at similar companies like Insight Enterprises or CDW Corporation would provide further context.
Stakeholder Impact
- The transactions have a minimal direct impact on stakeholders, as they are related to executive compensation and tax obligations.
- The disclosure provides transparency to shareholders regarding insider trading activities.
Key Dates
| Date | Description |
|---|---|
| February 13, 2018 | Restricted stock units were granted under the PC Connection, Inc. Amended and Restated 2007 Stock Incentive Plan. |
| April 1, 2025 | 10,000 restricted stock units vested and 3,935 shares were disposed of to cover tax obligations. |
| April 1, 2025 through 2027 | Remaining restricted stock units are scheduled to vest in increments of 10,000 shares each year. |
| 04/02/2025 | Date of signature for the Form 4 filing. |
Keywords
PC Connection Inc, CNXN, Timothy McGrath, Form 4, Stock, Restricted Stock Units, Vesting, CEO, Insider Trading
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