Form 4: Regal Rexnord Executive Disposes of Shares for Tax Obligations, Maintains Significant Holdings

A recent SEC Form 4 filing reveals that Alexander P. Scarpelli, SVP, Corporate Controller, and Chief Accounting Officer of Regal Rexnord Corp, disposed of 30 shares of common stock to cover tax withholding obligations.

Summary

• Alexander P. Scarpelli, SVP, Corporate Controller and Chief Accounting Officer of Regal Rexnord Corp (RRX), reported a transaction on June 3, 2025.
• The transaction involved the disposition of 30 shares of common stock at a price of $133.44 per share.
• This disposition was coded 'F', indicating it was made to satisfy tax withholding obligations related to equity compensation.
• Following this transaction, Mr. Scarpelli directly beneficially owns 3,479.049 shares of Regal Rexnord common stock.
• The filing also details holdings of Stock Appreciation Rights (SARs), including 1,193 SARs with an exercise price of $168.47 expiring on February 23, 2034, and 1,015 SARs with an exercise price of $154.20 expiring on February 23, 2033.
• These SARs vest over three years: 34% on the first anniversary, 33% on the second, and 33% on the third anniversary of the grant date.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The transaction is a routine disposition for tax purposes, not a discretionary sale, and the executive retains significant holdings, indicating continued alignment with company performance.

Positives

• The disposition of shares was for tax withholding purposes, which is a routine and expected event for executives receiving equity compensation, rather than a discretionary sale.
• Mr. Scarpelli retains a significant beneficial ownership of 3,479.049 common shares, indicating continued alignment with shareholder interests.
• The executive also holds substantial Stock Appreciation Rights, further aligning his incentives with the company's long-term performance.

Negatives

• A small number of shares were disposed of, reducing the executive's direct common stock holdings, although this was for tax purposes.

Future Outlook

This Form 4 filing is a historical record of an insider transaction and does not provide forward-looking statements or guidance regarding the company's future performance or outlook.

Industry Context

This filing is a routine disclosure of an insider transaction, common across all publicly traded companies, and does not provide specific insights into broader industry trends or competitive dynamics.

Stakeholder Impact

• Shareholders: The transaction is a routine tax-related disposition and is unlikely to have a significant impact on shareholder sentiment or the company's stock price due to its small size and nature.
• Employees: No direct impact on employees is indicated by this filing.

Key Dates

Recommendation

Keywords

SEC Form 4, Insider Transaction, Beneficial Ownership, Stock Disposition, Tax Withholding, Executive Compensation, Regal Rexnord Corp, RRX, Alexander P. Scarpelli, Stock Appreciation Rights