Form 4: Plexus Regional President Receives Equity Grants

Plexus Corp.'s Regional President for APAC, Victor Tan, was granted 2,020 Restricted Stock Units and 2,840 Performance Stock Units.

Summary

• Victor Tan, Regional President APAC of Plexus Corp. (PLXS), was granted equity awards on February 9, 2026.
• The grants include 2,020 Restricted Stock Units (RSUs) and 2,840 Performance Stock Units (PSUs) under the Plexus Corp. 2024 Omnibus Incentive Plan.
• Each RSU represents a contingent right to receive one share of Plexus Corp. common stock and vests on February 9, 2029.
• Each PSU represents a contingent right to receive one share of common stock if certain conditions are met.
• Vesting for 820 PSUs is tied to Plexus Corp.'s relative total shareholder return (TSR) compared to companies in the S&P 400 Index, with a potential earn-out of up to 150% of the target.
• The remaining PSUs' vesting is based on economic return (ER) goals over a three-year performance period, with a potential earn-out of up to 200% of the target.
• Following these transactions, Victor Tan beneficially owns 11,435 shares of Common Stock directly.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, reflecting standard executive incentive practices that align management's interests with long-term company performance and shareholder value.

Positives

• The grants of Restricted Stock Units and Performance Stock Units align management incentives with long-term shareholder value creation.
• Performance-based vesting conditions for PSUs, tied to relative TSR and economic return, encourage strong operational and market performance.
• The use of the 2024 Omnibus Incentive Plan indicates a structured approach to executive compensation and retention.

Future Outlook

The future outlook for Victor Tan's equity compensation is tied to the company's performance, with RSUs vesting on a fixed date and PSUs vesting based on achieving specific relative total shareholder return and economic return goals over a three-year performance period, offering potential for earning up to 150% or 200% of target amounts depending on the metric.

Industry Context

StockSavvy.ai notes that the granting of Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) is a standard practice in executive compensation across various industries, including the electronics manufacturing services sector where Plexus operates. This approach is widely adopted to align executive interests with long-term company performance and shareholder value, similar to peers in the technology and manufacturing space.

Comparison to Industry Standards

• The structure of equity grants, combining time-based RSUs and performance-based PSUs, is consistent with best practices in executive compensation observed in comparable companies within the S&P 400 Index.
• Tying PSU vesting to relative Total Shareholder Return (TSR) against the S&P 400 Index is a common benchmark for large-cap companies, ensuring performance is measured against a broad market peer group.
• The inclusion of Economic Return (ER) as a performance metric for PSUs is also a sophisticated approach, often used by companies like Intel or Texas Instruments, to ensure capital efficiency and profitability are key drivers for executive incentives.

Corporate Governance

Related Party Transactions

• The transaction involves an equity grant from Plexus Corp. to Victor Tan, a Regional President and officer of the company, which is a standard related-party transaction for executive compensation.

Stakeholder Impact

• Shareholders: The grants are designed to align executive incentives with shareholder value creation through performance-based vesting conditions.
• Employees: The incentive plan may contribute to a culture of performance and retention among key management personnel.

Next Steps

• The Restricted Stock Units are scheduled to vest on February 9, 2029.
• The Performance Stock Units will vest based on the achievement of relative TSR and ER goals over a three-year performance period.

Key Dates

Recommendation

This Form 4 filing details routine executive equity grants and does not contain information that would typically warrant a change in investment recommendation. It reflects standard compensation practices aimed at aligning management incentives with long-term company performance, which is generally a neutral to slightly positive factor for a seasoned investor.

Keywords

Plexus Corp, PLXS, SEC Form 4, Restricted Stock Units, Performance Stock Units, Equity Grant, Executive Compensation, Insider Transaction, Stock Options, Corporate Governance