Form 4: Plexus Regional President Tan Boosts Common Stock Holdings

Plexus Corp's Regional President for APAC, Victor Tan, increased his direct beneficial ownership of common stock following the vesting and conversion of performance stock units.

Summary

• Victor Tan, Regional President APAC of Plexus Corp, reported changes in his beneficial ownership.
• On November 12, 2025, Tan acquired 2,332 shares of Plexus Common Stock through the exercise/conversion of derivative securities.
• Following this transaction, Tan directly beneficially owns 11,055 shares of Common Stock.
• 138% of the Performance Stock Units (PSUs) granted in fiscal 2023, tied to economic return goals, vested.
• The portion of PSUs vesting based on relative total shareholder return (TSR) is still within its three-year performance period.
• Tan had the opportunity to earn up to 200% of targeted PSUs based on economic return and up to 150% based on TSR.
• Tan also acquired 642 new Performance Stock Units and disposed of 2,332 PSUs (due to conversion).
• He now directly beneficially owns 3,752 Performance Stock Units.

Sentiment

Score: 7

Explanation: The filing indicates positive performance leading to the vesting of a significant portion of performance-based equity awards for a key executive, aligning management incentives with shareholder interests. No negative information is disclosed.

Positives

• Vesting of 138% of Performance Stock Units related to economic return goals indicates strong company performance in that area.
• Increased direct beneficial ownership of common stock by a key executive (Victor Tan) aligns management's interests with shareholders.

Future Outlook

The vesting of Performance Stock Units tied to relative total shareholder return (TSR) for the fiscal 2023 grant is still pending, indicating future potential for additional share awards based on ongoing company performance against the S&P 400 Index.

Management Comments

• Based on Company performance during the three-year performance period, 138% of the portion of the Performance Stock Units granted in fiscal 2023 related to economic return goals vested.
• The three-year performance period for the portion of the PSUs that vests based on the relative total shareholder return of the Company's common stock as compared to companies in the S&P 400 Index has yet to conclude.
• The reporting person had the opportunity to earn up to 200% of the targeted amount based on ER originally reported and has the opportunity to earn up to 150% of the targeted amount based on TSR originally reported.

Industry Context

This Form 4 filing reflects standard executive compensation practices involving performance-based equity awards, common across publicly traded companies to align executive incentives with long-term shareholder value creation. The use of both economic return and relative total shareholder return metrics is a common approach to incentivize both internal operational efficiency and external market competitiveness.

Comparison to Industry Standards

• The use of Performance Stock Units (PSUs) with multi-year vesting periods and performance hurdles (economic return, relative TSR) is a widely adopted best practice in executive compensation across industries, including the electronics manufacturing services (EMS) sector where Plexus operates.
• Tying PSU vesting to relative Total Shareholder Return (TSR) against an index like the S&P 400 is a common mechanism to benchmark performance against peers and ensure executives are rewarded for outperforming the broader market, similar to practices seen in companies like Jabil Inc. or Celestica Inc.
• The achievement of 138% vesting for economic return goals suggests strong internal performance, which can be compared to similar operational efficiency metrics reported by industry competitors.

Stakeholder Impact

• Shareholders: Increased alignment of executive interests with shareholder value due to increased common stock ownership and performance-based compensation.
• Employees: Demonstrates the company's commitment to performance-based incentives for its leadership.

Next Steps

• Conclusion of the three-year performance period for the relative total shareholder return (TSR) portion of the fiscal 2023 Performance Stock Units, which will determine additional vesting.

Key Dates

Recommendation

This Form 4 filing details a routine insider transaction related to the vesting of performance-based equity awards. While the 138% vesting for economic return goals is positive, indicating strong internal performance, it does not present new fundamental information that would significantly alter the investment thesis for Plexus Corp. The transaction aligns executive incentives with shareholders but is not a catalyst for a 'buy' or 'sell' recommendation on its own. Investors should continue to 'hold' and monitor broader company performance and market conditions.

Keywords

Plexus Corp, PLXS, Victor Tan, Insider Trading, Form 4, Stock Ownership, Performance Stock Units, Executive Compensation, Beneficial Ownership