Form 4: Plexus Executive's Stock Transactions Post PSU Vesting

Plexus Regional President Michael Running reported the vesting of performance stock units and subsequent stock transactions, including a sale to cover tax obligations.

Summary

• Michael J. Running, Regional President AMER for PLEXUS CORP, reported changes in beneficial ownership of common stock.
• 1,096 shares of common stock were acquired upon the vesting of Performance Stock Units (PSUs).
• 516 shares of common stock were disposed of at a price of $195.95 per share to satisfy tax withholding obligations related to the PSU vesting.
• Following these transactions, Michael J. Running beneficially owns 1,875 shares of common stock.
• The PSUs, granted in fiscal 2023, vested at 142.4% of the targeted amount, based on the Company's relative total shareholder return (TSR) compared to companies in the S&P 400 Index over a three-year performance period.
• The reporting person had the opportunity to earn up to 150% of the targeted PSU amount based on TSR.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive indicator of PLEXUS CORP's performance, as executive compensation tied to relative TSR vested at a high percentage, reflecting strong shareholder returns.

Positives

• Performance Stock Units (PSUs) vested at 142.4% of the targeted amount, indicating strong company performance relative to the S&P 400 Index.
• The vesting demonstrates PLEXUS CORP's ability to achieve significant shareholder return over the three-year performance period.

Negatives

• The sale of 516 shares of common stock, valued at $195.95 per share, reduces the direct ownership stake of a key executive, although it was for tax purposes.

Future Outlook

This Form 4 filing does not contain specific forward-looking statements or guidance regarding the company's future performance or outlook.

Management Comments

• Based on Company performance during the three-year performance period, 142.4% of the portion of the Performance Stock Units ('PSUs') granted in fiscal 2023 related to the relative total shareholder return ('TSR') of the Company's common stock as compared to companies in the S&P 400 Index vested.
• As previously disclosed, the reporting person had the opportunity to earn up to 150% of the targeted amount of PSUs based on TSR originally reported.

Industry Context

StockSavvy.ai notes that executive compensation tied to relative TSR, as seen with Plexus's PSUs, is a common practice designed to align management incentives with shareholder interests and outperform peers. The 142.4% vesting suggests strong relative performance within the electronics manufacturing services industry, which is often cyclical and sensitive to global supply chains and technology demand.

Comparison to Industry Standards

• The vesting of Performance Stock Units at 142.4% of the target amount indicates strong performance relative to the S&P 400 Index, a broad market benchmark. This suggests Plexus Corp's Total Shareholder Return (TSR) outperformed a significant portion of its peers.
• For example, if a competitor like Jabil Inc. or Celestica Inc. had similar PSU structures tied to TSR, a comparable vesting percentage would indicate superior or inferior performance. A 142.4% payout is generally considered excellent, as it exceeds the target (100%) and approaches the maximum potential (150%).

Stakeholder Impact

• Shareholders: The high vesting percentage of PSUs suggests strong Total Shareholder Return (TSR) performance, which is positive for existing shareholders.
• Employees (Executive): Michael J. Running benefited from the vesting of PSUs, indicating successful achievement of performance targets.

Key Dates

Keywords

Plexus Corp, PLXS, Insider Transaction, Form 4, Performance Stock Units, Executive Compensation, Stock Vesting, Total Shareholder Return