Form 4: Regal Rexnord Exec Reports RSU Grant, Tax Withholding

Alexander P. Scarpelli, SVP, Corporate Controller and CAO of Regal Rexnord Corp, reported the acquisition of Restricted Stock Units and subsequent sales for tax withholding purposes.

Summary

• Alexander P. Scarpelli, Senior Vice President, Corporate Controller and Chief Accounting Officer, acquired 642 shares of Common Stock on February 23, 2026, through a Restricted Stock Unit (RSU) grant.
• The RSUs vest 34% on the first anniversary, 33% on the second anniversary, and 33% on the third anniversary of the grant date.
• Scarpelli disposed of 81 shares of Common Stock on February 23, 2026, at a price of $218.2 per share, likely for tax withholding related to the RSU vesting.
• An additional 94 shares of Common Stock were disposed of on February 24, 2026, at $223.69 per share, also likely for tax withholding related to the RSU vesting.
• Following these transactions, Scarpelli beneficially owns 3,760.401 shares of Common Stock directly.
• Scarpelli also holds Stock Appreciation Rights (SARs): 1,015 SARs with an exercise price of $154.2 (vesting from February 23, 2024, expiring February 23, 2033) and 1,193 SARs with an exercise price of $168.47 (vesting from February 23, 2025, expiring February 23, 2034).
• The Stock Appreciation Rights vest 34% on the first anniversary, 67% on the second anniversary, and 100% on the third anniversary of their respective grant dates.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral. It reflects standard executive compensation practices (RSU grant and tax-related sales) and does not indicate any significant change in company prospects or insider sentiment beyond routine operations.

Positives

• The grant of 642 Restricted Stock Units (RSUs) to a Senior Vice President indicates continued incentive alignment between management and shareholder interests.
• The holding of Stock Appreciation Rights (SARs) further aligns management's compensation with the company's stock performance.

Negatives

• The disposition of 175 shares (81 + 94) for tax withholding purposes, while routine, represents a reduction in direct share ownership.

Industry Context

StockSavvy.ai notes that routine Form 4 filings, such as this one detailing RSU grants and tax-related sales, are common across publicly traded companies. They reflect standard executive compensation practices designed to align management incentives with long-term shareholder value, a prevalent trend in the industrial manufacturing sector where Regal Rexnord operates.

Related Party Transactions

• The acquisition of 642 Restricted Stock Units (RSUs) by Alexander P. Scarpelli, an SVP, Corporate Controller and CAO, from Regal Rexnord Corp is a related party transaction as it involves compensation from the company to an executive.

Stakeholder Impact

• Shareholders: The RSU grant aligns executive incentives with shareholder value creation, while the tax-related sales are a routine part of compensation.
• Employees: No direct impact on general employees is indicated.
• Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation activities, specifically the grant of Restricted Stock Units and subsequent sales for tax withholding. It does not provide new information that would fundamentally alter the investment thesis for Regal Rexnord Corp. Therefore, a 'hold' recommendation is appropriate as the filing does not present a catalyst for significant upward or downward re-evaluation of the stock.

Keywords

Regal Rexnord, RRX, Form 4, Insider Trading, Restricted Stock Units, RSU, Stock Appreciation Rights, SAR, Executive Compensation, Alexander Scarpelli