Form 4: Regal Rexnord SVP Acquires RSUs, Disposes Shares

Regal Rexnord's SVP and Chief Digital & Information Officer, Timothy A. Dickson, acquired Restricted Stock Units and disposed of common stock.

Summary

• Timothy A. Dickson, SVP & Chief Digital & Information Officer of Regal Rexnord Corp (RRX), reported transactions involving company securities.
• On February 23, 2026, Mr. Dickson acquired 917 shares of Common Stock through a Restricted Stock Unit (RSU) grant at a price of $0.
• Following this acquisition, Mr. Dickson's beneficial ownership of common stock was 5,152.008 shares.
• Also on February 23, 2026, Mr. Dickson disposed of 56 shares of Common Stock at a price of $218.2 per share, reducing his beneficial ownership to 5,096.008 shares.
• On February 24, 2026, an additional 149 shares of Common Stock were disposed of at a price of $223.69 per share, bringing his beneficial ownership to 4,947.008 shares.
• The RSUs granted on February 23, 2026, vest 34% on the first anniversary, 33% on the second anniversary, and 33% on the third anniversary of the grant date.
• Mr. Dickson also holds 1,392 Stock Appreciation Rights (SARs) with an exercise price of $168.47, which vest 34% on February 23, 2025, 67% on February 23, 2026, and 100% on February 23, 2027, and expire on February 23, 2034.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive event, reflecting standard executive compensation practices that align management incentives with shareholder interests, without indicating any significant operational or financial changes.

Positives

• The grant of 917 Restricted Stock Units (RSUs) to a Senior Vice President indicates continued incentive alignment between management and shareholder interests.
• The acquisition of RSUs at a $0 price represents a direct equity award, enhancing the executive's stake in the company's future performance.

Negatives

• The disposition of 56 shares at $218.2 and 149 shares at $223.69 likely represents shares withheld for tax obligations related to the RSU vesting, which is a common practice but reduces the executive's direct shareholding.

Future Outlook

The vesting schedules for the Restricted Stock Units (RSUs) and Stock Appreciation Rights (SARs) indicate a long-term incentive structure for the SVP & Chief Digital & Information Officer, aligning future compensation with the company's performance over the next several years.

Industry Context

StockSavvy.ai notes that the use of Restricted Stock Units (RSUs) and Stock Appreciation Rights (SARs) is a standard practice in executive compensation across various industries, including industrial manufacturing, to align executive incentives with long-term shareholder value creation. This filing reflects a routine compensation event rather than a strategic shift.

Comparison to Industry Standards

• The structure of RSU and SAR grants with multi-year vesting schedules is consistent with common executive compensation practices observed in comparable industrial companies such as Rockwell Automation (ROK) or Emerson Electric (EMR), which often utilize similar equity-based incentives to retain key talent and promote long-term performance.

Stakeholder Impact

• Shareholders: The RSU grant aligns the interests of a key executive with shareholders, potentially encouraging long-term value creation. The dispositions are routine for tax purposes and do not signal a lack of confidence.
• Employees: No direct impact on general employees is indicated by this filing.

Next Steps

• The remaining RSUs will continue to vest on the second and third anniversaries of the grant date (February 23, 2027, and February 23, 2028).
• The remaining SARs will fully vest on February 23, 2027, and will remain exercisable until their expiration on February 23, 2034.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation transactions (RSU grant and tax-related share dispositions) and does not contain information that would fundamentally alter the investment thesis for Regal Rexnord. It reinforces management's long-term alignment but does not provide new operational or financial data to warrant a change in recommendation. Therefore, a 'hold' recommendation is appropriate for investors already holding the stock.

Keywords

Regal Rexnord, RRX, Form 4, Insider Trading, Restricted Stock Units, RSU, Stock Appreciation Rights, SAR, Executive Compensation, Beneficial Ownership, Timothy A. Dickson