Form 4: Regal Rexnord Executive Boosts Equity Holdings

Regal Rexnord EVP Brooke Lang acquired additional restricted stock units and holds significant stock appreciation rights, reflecting ongoing equity participation.

Summary

• Brooke Lang, Executive Vice President and President of Power Efficiency Solutions at Regal Rexnord Corp (RRX), acquired 8.815 additional shares of common stock.
• These shares were restricted stock units (RSUs) credited through a dividend equivalent reinvestment provision, subject to the same vesting terms as the original awards.
• The acquisition occurred on January 14, 2026, at a price of $155.29 per share.
• Following this transaction, Lang directly beneficially owns 6,268.543 shares of common stock.
• Lang also holds 969 Stock Appreciation Rights (SARs) with an exercise price of $154.20, granted on February 23, 2024, and expiring on February 23, 2033.
• Additionally, Lang holds 2,983 SARs with an exercise price of $168.47, granted on February 23, 2025, and expiring on 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: 7

Explanation: The filing indicates a positive alignment of executive interests with shareholders through increased equity ownership and participation in long-term incentive plans, which is generally viewed favorably.

Positives

• Increased direct beneficial ownership of common stock by a key executive, aligning interests with shareholders.
• Dividend reinvestment in restricted stock units indicates a long-term commitment to the company's performance.
• Holding of Stock Appreciation Rights provides a strong incentive for the executive to drive future stock price growth.

Future Outlook

The vesting schedule for the Stock Appreciation Rights (SARs) indicates future exercisability, with 34% vesting on the first anniversary, 67% on the second, and 100% on the third anniversary of their respective grant dates (February 23, 2024, and February 23, 2025).

Industry Context

This filing reflects a routine insider transaction, common across industries, where executives increase their equity holdings through compensation plans or dividend reinvestment, aligning their financial interests with long-term company performance.

Related Party Transactions

• Acquisition of 8.815 restricted stock units (RSUs) by EVP Brooke Lang through a dividend equivalent reinvestment provision, a standard component of executive compensation.
• Holding of 969 and 2,983 Stock Appreciation Rights (SARs) by EVP Brooke Lang, which are part of the company's long-term incentive plan for executives.

Stakeholder Impact

• Shareholders: Positive alignment of executive interests with shareholder value creation through increased equity ownership and long-term incentives.

Next Steps

• Continued vesting of Stock Appreciation Rights on their respective anniversary dates.
• Future dividend payments may lead to further restricted stock unit accruals through dividend equivalent reinvestment.

Key Dates

Recommendation

This Form 4 filing reports a routine insider transaction where an executive acquired additional restricted stock units through dividend reinvestment and holds existing Stock Appreciation Rights. While it demonstrates executive alignment with shareholder interests, it does not present new material information that would significantly alter the investment thesis for Regal Rexnord Corp, thus a 'hold' recommendation is appropriate based solely on this filing.

Keywords

Regal Rexnord, RRX, insider transaction, executive compensation, restricted stock units, stock appreciation rights, equity ownership