Form 4: Regal Rexnord CFO Rehard Reports Stock Transactions

Sentiment:

Insider Transaction Report


Regal Rexnord's EVP and CFO, Robert Rehard, reported the acquisition of 4,124 common shares and the disposition of 1,574 shares for tax purposes.

Summary

  • Robert Rehard, Executive Vice President and Chief Financial Officer of Regal Rexnord Corp (RRX), reported recent transactions in company stock.
  • On February 23, 2026, Rehard acquired 4,124 shares of common stock at a price of $0, likely related to the vesting of Restricted Stock Units (RSUs).
  • These RSUs vest 34% on the first anniversary, 67% on the second anniversary, and 100% on the third anniversary of the grant date.
  • On February 23, 2026, Rehard disposed of 804 shares of common stock at $218.21 per share.
  • On February 24, 2026, Rehard disposed of an additional 770 shares of common stock at $223.69 per share.
  • These dispositions, totaling 1,574 shares, were likely for tax withholding purposes related to the RSU vesting.
  • Following these transactions, Rehard directly beneficially owns 36,703.954 shares of common stock.
  • The filing also details Rehard's holdings of various Stock Appreciation Rights (SARs) with exercise prices ranging from $74.04 to $168.47 and different vesting schedules.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this filing as moderately positive. While largely a routine disclosure of insider transactions, the acquisition of additional shares through RSU vesting demonstrates continued executive equity ownership and alignment with shareholder interests, which is generally a positive signal.

Positives

  • Robert Rehard, EVP and CFO, acquired 4,124 shares of common stock, indicating continued equity ownership and alignment with shareholder interests.
  • The acquisition of shares at $0 suggests the vesting of Restricted Stock Units, which are a common form of long-term incentive compensation.

Future Outlook

The filing details future vesting schedules for Restricted Stock Units and Stock Appreciation Rights, indicating ongoing long-term incentive compensation for the EVP and CFO, aligning his interests with future company performance.

Industry Context

StockSavvy.ai notes that routine insider transaction reports like this Form 4 are common across all industries for publicly traded companies. The use of Restricted Stock Units and Stock Appreciation Rights as executive compensation tools is standard practice, aiming to align management incentives with long-term shareholder value creation, consistent with peers in the industrial manufacturing sector.

Comparison to Industry Standards

  • StockSavvy.ai observes that the compensation structure involving RSUs and SARs for a senior executive like an EVP and CFO is a standard practice in large industrial companies.
  • For example, similar equity-based compensation plans are utilized by companies such as General Electric (GE), Honeywell (HON), and Siemens (SIEGY) to incentivize long-term performance and retain key talent.
  • The specific vesting schedules (e.g., 3-year for RSUs, 3-5 years for SARs) are also within typical industry ranges designed to encourage sustained commitment and performance.

Stakeholder Impact

  • Shareholders: The acquisition of shares by a key executive through RSU vesting aligns management's interests with shareholder value creation. The dispositions for tax purposes are routine and do not reflect a change in investment sentiment.
  • Employees: The compensation structure for the EVP and CFO, including RSUs and SARs, reflects the company's approach to executive incentives, which may influence broader compensation strategies.

Next Steps

  • Future vesting of the 4,124 Restricted Stock Units on their first, second, and third anniversaries.
  • Ongoing vesting of various Stock Appreciation Rights according to their respective schedules (e.g., 40% on second anniversary, 60% on third, etc.).
  • Expiration of various Stock Appreciation Rights between 2027 and 2034.

Key Dates

DateDescription
05/10/2019Grant date for Stock Appreciation Rights with an exercise price of $76.99.
05/09/2020Grant date for Stock Appreciation Rights with an exercise price of $74.04.
02/18/2021Grant date for Stock Appreciation Rights with an exercise price of $84.39.
05/08/2021Grant date for Stock Appreciation Rights with an exercise price of $78.05.
02/23/2022Grant date for Stock Appreciation Rights with an exercise price of $133.77.
02/23/2023Grant date for Stock Appreciation Rights with an exercise price of $151.27.
02/23/2024Grant date for Stock Appreciation Rights with an exercise price of $154.20.
02/23/2025Grant date for Stock Appreciation Rights with an exercise price of $168.47.
02/23/2026Transaction date for acquisition of 4,124 common shares and disposition of 804 common shares.
02/24/2026Transaction date for disposition of 770 common shares.
02/25/2026Signature date of the filing by Power of Attorney.
05/10/2027Expiration date for Stock Appreciation Rights granted on 05/10/2019.
05/09/2028Expiration date for Stock Appreciation Rights granted on 05/09/2020.
05/08/2029Expiration date for Stock Appreciation Rights granted on 05/08/2021.
02/18/2030Expiration date for Stock Appreciation Rights granted on 02/18/2021.
02/23/2031Expiration date for Stock Appreciation Rights granted on 02/23/2022.
02/23/2032Expiration date for Stock Appreciation Rights granted on 02/23/2023.
02/23/2033Expiration date for Stock Appreciation Rights granted on 02/23/2024.
02/23/2034Expiration date for Stock Appreciation Rights granted on 02/23/2025.

Recommendation

hold

This Form 4 filing is a routine disclosure of insider transactions related to executive compensation. The acquisition of shares through RSU vesting and subsequent disposition for tax withholding are expected events and do not indicate a significant change in the company's fundamentals or the executive's outlook. Therefore, it does not warrant a change in investment recommendation based solely on this filing.

Keywords

Regal Rexnord, RRX, Robert Rehard, EVP, CFO, Insider Trading, Form 4, Stock Appreciation Rights, Restricted Stock Units, Equity Compensation, Share Ownership

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