Form 4: Pentair Executive Receives Significant Equity Grant

Pentair plc's SVP, CAO & Controller, Jennifer M. Hensley, was granted 889 restricted stock units and 2,491 employee stock options as part of the company's incentive plan.

Summary

• Jennifer M. Hensley, SVP, CAO & Controller of PENTAIR plc (PNR), received a grant of equity securities.
• The grant included 889 Restricted Stock Units (RSUs) on January 2, 2026, with a grant price of $0.
• The grant also included 2,491 Employee Stock Options (ESOs) on January 2, 2026, with an exercise price of $105.47.
• Following these transactions, Ms. Hensley beneficially owns 3,670.76 Restricted Stock Units directly.
• She also directly owns 1,678.247 Common Shares and indirectly owns 270.267 Common Shares through an ESOP Plan Agent.
• The ESOs have an expiration date of January 2, 2036.
• The RSUs are subject to vesting conditions under the Pentair plc 2020 Share and Incentive Plan.
• The ESOs vest in three equal annual installments, with one-third becoming exercisable on the first, second, and third anniversaries of the grant date.

Sentiment

Score: 7

Explanation: The filing reports a routine executive compensation event, which is generally positive for the executive and reflects standard corporate governance practices. It does not indicate any immediate market-moving news for the company as a whole.

Positives

• The grant of Restricted Stock Units and Employee Stock Options aligns the executive's interests with long-term shareholder value.
• The equity awards serve as a key component of executive compensation, incentivizing performance and retention.

Future Outlook

The grants of Restricted Stock Units and Employee Stock Options are subject to future vesting conditions, with RSUs vesting based on plan terms and ESOs vesting in three annual installments over the next three years. This structure aims to retain the executive and align her long-term performance with shareholder interests.

Industry Context

This equity grant is a standard practice in executive compensation across various industries, including manufacturing and industrial sectors where Pentair operates. Such grants are designed to attract, retain, and motivate key management personnel by linking their financial incentives to the company's stock performance and long-term strategic goals.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) and Employee Stock Options (ESOs) as part of executive compensation is a common practice, aligning with typical incentive structures seen in comparable industrial companies.
• The vesting schedule for the ESOs, with one-third becoming exercisable annually over three years, is a standard approach to promote long-term retention and performance among executives in the sector.

Corporate Governance

Stakeholder Impact

• Shareholders: The equity grants align the interests of a key executive with long-term shareholder value creation, potentially leading to improved company performance.
• Employees: The grants are part of a broader incentive plan, which can positively influence overall employee morale and retention by demonstrating a commitment to performance-based rewards for leadership.

Next Steps

• Vesting of Restricted Stock Units according to the terms of the Pentair plc 2020 Share and Incentive Plan.
• Employee Stock Options will become exercisable in three equal annual installments on the first, second, and third anniversaries of the grant date (January 2, 2027, 2028, and 2029).

Key Dates

Keywords

Pentair, PNR, Form 4, Insider Transaction, Equity Grant, Restricted Stock Units, Employee Stock Options, Executive Compensation, Corporate Governance