Form 4: Pentair Executive Chiu Receives Equity Awards, Sells Shares for Tax

Pentair plc's EVP and President of Water Solutions, Adrian C. Chiu, reported the acquisition of restricted stock units and employee stock options, alongside the disposal of common shares to cover tax obligations.

Summary

• Adrian C. Chiu, EVP & President, Water Solutions at Pentair plc, acquired 3,556 Restricted Stock Units (RSUs) on January 2, 2026, under the company's 2020 Share and Incentive Plan.
• Each RSU represents a right to receive one Pentair plc share upon vesting.
• Chiu also acquired 9,965 Employee Stock Options on January 2, 2026, with an exercise price of $105.47 per share, granted under the 2020 Share and Incentive Plan.
• These stock options will become exercisable in three equal annual installments, starting on the first anniversary of the grant date, and expire on January 2, 2036.
• To cover tax liabilities associated with the vesting of previously reported restricted stock units, Chiu disposed of a total of 576 common shares across two days: 226 shares at $105.47 and 132 shares at $105.47 on January 2, 2026, and 218 shares at $102.67 on January 3, 2026.
• End-of-period holdings include shares acquired under a dividend reinvestment plan and monthly purchases under the Employee Stock Purchase Plan (ESPP), which are exempt transactions.
• Chiu's indirect beneficial ownership includes 426.344 common shares through an ESOP and 15,343.441 common shares through a Deferral Plan.

Sentiment

Score: 7

Explanation: The sentiment is positive as the executive received significant equity awards (RSUs and stock options), indicating continued alignment with company performance and long-term incentives. The share disposals were for tax purposes, a routine event for equity compensation.

Positives

• The grant of 3,556 Restricted Stock Units (RSUs) aligns executive interests with shareholder value, as these units convert to shares upon vesting.
• The acquisition of 9,965 Employee Stock Options provides a long-term incentive for the executive, with a potential for future gains if the stock price increases above the exercise price of $105.47.
• The equity awards demonstrate continued confidence in the executive's role and performance within the company.

Negatives

• The disposal of 576 common shares to cover tax obligations, while a standard practice for equity compensation, reduces the executive's direct shareholdings.

Future Outlook

The filing details executive equity compensation, which implies a long-term commitment and incentive structure for the reporting person. The vesting schedules for RSUs and stock options extend into future years, aligning the executive's interests with the company's long-term performance.

Industry Context

This Form 4 filing reflects routine executive compensation practices within publicly traded companies, where equity awards like restricted stock units and stock options are commonly used to incentivize and retain key management personnel. The disposal of shares for tax withholding is a standard procedure upon the vesting of such awards.

Corporate Governance

Stakeholder Impact

• Shareholders: The equity awards align the executive's financial interests with the long-term performance of the company, potentially fostering decisions that enhance shareholder value. The tax-related share disposals are a normal part of executive compensation and do not indicate a lack of confidence.
• Employees: The use of the 2020 Share and Incentive Plan and ESPP indicates a structured approach to employee and executive equity participation.

Next Steps

• The 3,556 Restricted Stock Units will vest according to the terms of the Pentair plc 2020 Share and Incentive Plan, at which point they will convert into Pentair plc common shares.
• The 9,965 Employee Stock Options will become exercisable in three equal installments on the first, second, and third anniversaries of the January 2, 2026 grant date.
• The reporting person will receive Pentair plc shares from the Deferral Plan in accordance with their irrevocable deferral election.

Key Dates

Keywords

Pentair, PNR, Form 4, Insider Transaction, Executive Compensation, Restricted Stock Units, Employee Stock Options, Equity Awards, Stock Disposal, Tax Withholding