Form 4: Plexus Corp Executive Michael J. Running Reports Acquisition of Restricted and Performance Stock Units

Michael J. Running, Regional President AMER at Plexus Corp, reports the acquisition of restricted stock units and performance stock units on February 3, 2025.

Summary

• On February 3, 2025, Michael J. Running, Regional President AMER of Plexus Corp, reported acquiring 1,710 restricted stock units and 1,720 performance stock units.
• The restricted stock units vest on February 3, 2028, and each unit represents a contingent right to receive one share of Plexus Corp common stock.
• The performance stock units also represent a contingent right to receive one share of Plexus Corp common stock if certain conditions are met.
• Vesting of 860 performance stock units depends on Plexus Corp's relative total shareholder return (TSR) compared to companies in the S&P 400 Index.
• The remaining performance stock units vest based on goals related to economic return (ER) during a three-year performance period.
• The reporting person may earn up to 150% of the targeted amount that is based on TSR and up to 200% of the targeted amount that is based on ER.
• Following the reported transactions, Running directly owns 1,922 shares of Plexus Corp common stock.

Sentiment

Score: 6

Explanation: The document is a neutral regulatory filing. The acquisition of stock units is generally a positive sign, but the sentiment is tempered by the contingent nature of the vesting and the lack of specific financial details.

Positives

• The acquisition of stock units aligns the executive's interests with those of the shareholders.
• The performance-based vesting criteria for the performance stock units incentivize the executive to improve the company's TSR and economic return.

Risks

• The vesting of the performance stock units is contingent on achieving specific performance targets, which may not be met.
• The value of the stock units is subject to market fluctuations and the performance of Plexus Corp's stock.

Future Outlook

The document does not contain specific forward-looking statements, but the vesting of performance stock units is tied to future company performance.

Industry Context

This filing is a routine disclosure of executive compensation in the form of stock units, which is a common practice in publicly traded companies to align management's interests with shareholders'.

Comparison to Industry Standards

• Granting restricted stock units and performance stock units is a common practice among publicly traded companies to incentivize executives.
• The vesting conditions based on TSR relative to the S&P 400 and economic return are typical performance metrics used in executive compensation plans.
• Companies like Jabil and Flex also use similar equity-based compensation plans for their executives.

Stakeholder Impact

• The acquisition of stock units by the executive aligns his interests with those of the shareholders, potentially leading to decisions that benefit shareholder value.
• The performance-based vesting criteria may incentivize the executive to improve company performance, which could benefit employees and other stakeholders.

Key Dates