Form 4: Regal Rexnord EVP Morton Reports Equity Grants

Regal Rexnord's EVP and President of Industrial Powertrain Solutions, Jerrald R. Morton, reported the grant of restricted stock units and stock appreciation rights.

Summary

• Jerrald R. Morton, EVP and President of Industrial Powertrain Solutions at Regal Rexnord Corp. (RRX), was granted 2,566 Restricted Stock Units (RSUs) of common stock on February 23, 2026.
• The RSUs will vest in three tranches: 34% on the first anniversary, 33% on the second anniversary, and 33% on the third anniversary of the grant date.
• Morton disposed of 412 shares of common stock at a price of $218.21 per share on February 23, 2026, likely for tax withholding purposes related to equity vesting.
• Morton holds 5,304 Stock Appreciation Rights (SARs) with an exercise price of $154.20, which became exercisable starting February 23, 2024, and expire on February 23, 2033.
• Morton also holds 5,171 Stock Appreciation Rights (SARs) with an exercise price of $168.47, which became exercisable starting February 23, 2025, and expire on February 23, 2034.
• The SARs vest 34% on the first anniversary, 67% on the second anniversary, and 100% on the third anniversary of their respective grant dates.
• Following these reported transactions, Morton's direct beneficial ownership of common stock is 26,183.762 shares.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive development, reflecting standard executive compensation practices designed to align management's interests with long-term shareholder value through equity ownership and performance incentives.

Positives

• The grant of Restricted Stock Units (RSUs) and Stock Appreciation Rights (SARs) aligns executive compensation with long-term shareholder interests and company performance.
• The multi-year vesting schedules for both RSUs and SARs promote executive retention and incentivize sustained performance over time.

Negatives

• The disposition of 412 shares of common stock, while likely for tax obligations, represents a slight reduction in direct share ownership.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that equity grants are a standard practice in executive compensation across the industrial sector, aiming to align management incentives with long-term company performance and shareholder returns. This filing reflects a routine aspect of executive compensation packages designed to foster commitment and drive value creation.

Related Party Transactions

• Grant of 2,566 Restricted Stock Units (RSUs) to Jerrald R. Morton, an executive officer.
• Grant of 5,304 Stock Appreciation Rights (SARs) to Jerrald R. Morton, an executive officer.
• Grant of 5,171 Stock Appreciation Rights (SARs) to Jerrald R. Morton, an executive officer.

Stakeholder Impact

• Shareholders: The equity grants align the executive's financial interests with the long-term performance and value creation for shareholders.
• Employees: This filing primarily concerns executive compensation and does not directly impact the broader employee base.

Next Steps

• Restricted Stock Units (RSUs) granted on 02/23/2026 will vest 34% on 02/23/2027, 33% on 02/23/2028, and 33% on 02/23/2029.
• Stock Appreciation Rights (SARs) with an implied grant date of 02/23/2023 (5,304 units) will vest 67% on 02/23/2025 and 100% on 02/23/2026.
• Stock Appreciation Rights (SARs) with an implied grant date of 02/23/2024 (5,171 units) will vest 67% on 02/23/2026 and 100% on 02/23/2027.

Key Dates

Recommendation

This Form 4 reports routine executive compensation in the form of equity grants, which is a standard practice to align management incentives with shareholder interests. It does not present new information that would fundamentally alter the investment thesis for Regal Rexnord Corp., thus a 'hold' recommendation is appropriate.

Keywords

Regal Rexnord, RRX, SEC Form 4, Insider Trading, Equity Grant, Restricted Stock Units, Stock Appreciation Rights, Executive Compensation