Form 4: Regal Rexnord EVP Granted RSUs, Disposes Shares

Regal Rexnord's EVP and President of Power Efficiency Solutions, Brooke Lang, received a grant of 2,016 restricted stock units and subsequently disposed of 480 common shares, likely for tax withholding.

Summary

• Brooke Lang, Executive Vice President and President of Power Efficiency Solutions at Regal Rexnord Corp (RRX), was granted 2,016 Restricted Stock Units (RSUs) on February 23, 2026.
• The RSUs vest over three years: 34% on the first anniversary, 33% on the second anniversary, and 33% on the third anniversary of the grant date.
• Following the RSU grant, Lang's direct beneficial ownership of common stock increased to 8,284.543 shares.
• Lang disposed of 158 common shares on February 23, 2026, at a price of $218.20 per share, reducing beneficial ownership to 8,126.543 shares.
• An additional 322 common shares were disposed of on February 24, 2026, at a price of $223.69 per share, bringing beneficial ownership to 7,804.543 shares.
• The dispositions of common stock are typically associated with tax withholding obligations upon the vesting of equity awards.
• Lang also holds Stock Appreciation Rights (SARs): 969 SARs exercisable from February 23, 2024, at $154.20, and 2,983 SARs exercisable from February 23, 2025, at $168.47.
• The SARs vest over three years: 34% on the first anniversary, 67% on the second anniversary, and 100% on the third anniversary of the grant date.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive event, reflecting standard executive compensation practices that align management incentives with shareholder interests, despite the minor share dispositions for tax purposes.

Positives

• The grant of 2,016 Restricted Stock Units (RSUs) to a key executive aligns management's interests with long-term shareholder value through equity incentives.
• The continued holding of a significant number of common shares (7,804.543) and Stock Appreciation Rights (3,952 total) by the EVP indicates ongoing commitment to the company's performance.

Negatives

• The disposition of 480 common shares, while likely for tax purposes, represents a reduction in direct share ownership by a key executive.

Future Outlook

The filing details equity grants and dispositions, which are part of executive compensation and do not contain explicit forward-looking statements or guidance regarding the company's future financial performance or strategic direction.

Industry Context

StockSavvy.ai notes that the grant of Restricted Stock Units (RSUs) and Stock Appreciation Rights (SARs) is a standard practice in executive compensation across various industries, including industrial manufacturing, to incentivize long-term performance and retain key talent. The dispositions are typical for covering tax obligations upon vesting of such awards.

Comparison to Industry Standards

• The RSU and SAR vesting schedules (34% on first anniversary, 33%/67% on second, 33%/100% on third) are common multi-year vesting schedules designed to encourage executive retention and long-term focus, aligning with practices seen at comparable industrial companies like Rockwell Automation or Emerson Electric.
• The disposition of shares for tax withholding purposes is a standard and expected event following the vesting of equity awards, consistent with practices observed across publicly traded companies globally.

Stakeholder Impact

• Shareholders: The RSU grant aligns executive incentives with long-term shareholder value creation. The dispositions are minor and expected.
• Employees: No direct impact on general employees is indicated by this filing.
• Management: The executive receives additional equity compensation, reinforcing their stake in the company's future performance.

Next Steps

• The RSUs will vest over the next three years, with portions vesting on the first, second, and third anniversaries of the February 23, 2026, grant date.
• The Stock Appreciation Rights will continue to vest and become exercisable according to their respective schedules, with full vesting on the third anniversary of their grant dates.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation activities (equity grants and tax-related share dispositions) and does not present new information that would fundamentally alter the investment thesis for Regal Rexnord. It reinforces that executive incentives are aligned with long-term performance, which is generally a positive, but it's not a catalyst for a 'buy' or 'sell' recommendation.

Keywords

Regal Rexnord, RRX, Form 4, Insider Transaction, Restricted Stock Units, RSU Grant, Stock Appreciation Rights, SARs, Executive Compensation, Equity Award, Share Disposition, Brooke Lang