Form 4: Regal Rexnord SVP Scarpelli Boosts Equity Holdings

Alexander P. Scarpelli, SVP, Corporate Controller and CAO of Regal Rexnord Corp, increased his beneficial ownership of common stock through dividend equivalent reinvestment.

Summary

• Alexander P. Scarpelli, Senior Vice President, Corporate Controller, and Chief Accounting Officer of Regal Rexnord Corp (RRX), reported changes in his beneficial ownership.
• Acquired 3.57 shares of Common Stock on October 14, 2025, at a price of $143.14 per share.
• This acquisition represents additional restricted stock units credited under the dividend equivalent reinvestment provision of the reporting person's outstanding restricted stock unit awards.
• The newly acquired restricted stock units are subject to the same terms and conditions, including vesting, as the original awards.
• Following this transaction, Scarpelli directly owns 3,290.102 shares of Common Stock.
• Holds Stock Appreciation Rights (SARs) with a strike price of $154.2, covering 1,015 underlying common shares. These SARs vest 34% on February 23, 2024, 67% on February 23, 2025, and 100% on February 23, 2026, with an expiration date of February 23, 2033.
• Holds additional SARs with a strike price of $168.47, covering 1,193 underlying common shares. These SARs vest 34% on February 23, 2025, 67% on February 23, 2026, and 100% on February 23, 2027, with an expiration date of February 23, 2034.

Sentiment

Score: 7

Explanation: The filing indicates an insider's increased beneficial ownership through dividend reinvestment and ongoing equity incentives, which is generally a positive signal of management's alignment with shareholder interests, though not a direct discretionary purchase.

Positives

• Insider, Alexander P. Scarpelli, increased his beneficial ownership of Regal Rexnord Corp common stock, aligning his interests with shareholders.
• The acquisition of 3.57 shares at $143.14 per share through dividend reinvestment indicates continued participation in the company's equity.
• The existence of Stock Appreciation Rights (SARs) provides management with incentives tied to the company's stock performance over the long term.

Negatives

• No direct open market purchases were reported; the increase in common stock ownership was due to dividend reinvestment, not a discretionary purchase.

Risks

• Form 4 filings typically do not detail company-specific risks; this filing focuses solely on insider transaction disclosures.

Future Outlook

The reporting person's outstanding restricted stock units and Stock Appreciation Rights are subject to future vesting schedules, aligning management incentives with long-term company performance. The restricted stock units from dividend reinvestment will vest under the same terms as the original awards. Stock Appreciation Rights vest 34% on the first anniversary, 67% on the second, and 100% on the third anniversary of their grant dates.

Management Comments

• Alexander P. Scarpelli holds the title of Senior Vice President, Corporate Controller and Chief Accounting Officer.

Industry Context

This Form 4 filing is a routine disclosure of insider transactions and does not provide broader industry context. It reflects an individual executive's equity compensation and dividend reinvestment within Regal Rexnord Corp, rather than industry-wide trends or competitive positioning.

Comparison to Industry Standards

• NA

Stakeholder Impact

• Shareholders: The increase in beneficial ownership by a key executive, even through dividend reinvestment, can be viewed as a positive signal of management's confidence and alignment with shareholder interests.
• Employees: The executive's compensation structure, including restricted stock units and Stock Appreciation Rights, demonstrates the company's approach to incentivizing its senior leadership.

Next Steps

• Continued vesting of Stock Appreciation Rights (SARs) on their respective anniversary dates.
• Future dividend payments may lead to further restricted stock unit credits through the dividend equivalent reinvestment provision.

Key Dates

Recommendation

While the increase in beneficial ownership through dividend reinvestment is a positive sign of management alignment, it is not a discretionary open market purchase. The filing primarily details routine equity compensation and does not provide new fundamental information to warrant a change from a 'hold' position based solely on this Form 4. Investors should consider broader company fundamentals and market conditions.

Keywords

Regal Rexnord, RRX, SEC Form 4, Insider Trading, Beneficial Ownership, Stock Appreciation Rights, Restricted Stock Units, Dividend Reinvestment, Alexander P. Scarpelli, Corporate Controller, Chief Accounting Officer