Form 4: Stepan EVP Haire Converts RSUs to Common Stock

Stepan Co's EVP of Supply Chain, Robert Joseph Haire, converted restricted stock units into common stock and sold shares to cover tax liabilities.

Summary

• Robert Joseph Haire, Executive Vice President of Supply Chain at Stepan Co (SCL), reported changes in his beneficial ownership.
• On December 31, 2025, 1,891 Restricted Stock Units (RSUs) were settled into shares of Stepan Company common stock.
• Concurrently, 574 shares of common stock were disposed of to satisfy tax liabilities associated with the vesting of these RSUs, at a price of $47.205 per share.
• Following these transactions, Mr. Haire directly owns 2,482 shares of common stock and indirectly owns 90.269 shares through the ESOP II Trust.
• He also beneficially owns 1,318 derivative Restricted Stock Units, which vest ratably over two years beginning December 31, 2025, and expire on December 31, 2026.

Sentiment

Score: 5

Explanation: Neutral. This is a routine insider transaction (RSU vesting and tax withholding) and does not indicate a strong positive or negative sentiment about the company's future prospects.

Positives

• The conversion of Restricted Stock Units into common stock increases the executive's direct ownership in the company, aligning interests with shareholders.

Negatives

• A portion of the shares (574) was disposed of to cover tax liabilities, reducing the net number of shares acquired from the RSU settlement.

Future Outlook

The remaining 1,318 Restricted Stock Units are scheduled to vest ratably over two years beginning on December 31, 2025, with an expiration date of December 31, 2026.

Industry Context

This is a routine insider transaction related to executive compensation, common across publicly traded companies, and does not reflect broader industry trends or competitive positioning.

Stakeholder Impact

• Shareholders: Minor dilution from RSU settlement, but generally a routine compensation event.
• Employees: Reflects standard executive compensation practices.

Next Steps

• Remaining 1,318 Restricted Stock Units will continue to vest ratably over two years, with the next vesting event occurring on December 31, 2026.

Key Dates

Recommendation

This Form 4 filing details a routine executive compensation event involving the vesting of Restricted Stock Units and the subsequent sale of shares to cover tax obligations. It does not provide new information regarding the company's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. Therefore, a 'hold' recommendation is appropriate, maintaining current positions based on existing company fundamentals and market outlook.

Keywords

Stepan Co, SCL, Form 4, Insider Trading, Restricted Stock Units, RSU Conversion, Executive Compensation, Beneficial Ownership, Robert Joseph Haire