Form 4: STRATTEC SECURITY CORP: CEO Jennifer Lynn Slater Receives Stock Grants

Jennifer Lynn Slater, President & CEO of STRATTEC SECURITY CORP, received multiple grants of restricted stock and performance restricted stock units on October 25, 2024.

Summary

• Jennifer Lynn Slater, the President & CEO of STRATTEC SECURITY CORP [STRT], filed a Form 4 on October 29, 2024, detailing changes in beneficial ownership.
• On October 25, 2024, Slater acquired 12,618 shares of restricted stock that vest on July 1, 2025.
• She also acquired 25,236 shares of restricted stock that vest in equal portions on July 1, 2026, and July 1, 2027.
• Additionally, Slater received 16,878 shares of restricted stock that vest pro rata over three years on each anniversary of the grant date (October 25, 2025, 2026, and 2027).
• Slater also acquired 16,878 performance restricted stock units, each representing a contingent right to receive one share of the Issuer's Common Stock based upon the Issuer's EBITDA percentage over a three-year performance period ending June 27, 2027.
• Following these transactions, Slater directly owns 54,732 shares of STRATTEC SECURITY CORP common stock.
• The filing was signed by J. Bret Treier, via Power of Attorney, on behalf of Jennifer Lynn Slater.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively as it aligns management's interests with shareholders. The sentiment is neutral to slightly positive.

Positives

• The grant of restricted stock and performance restricted stock units to the CEO aligns her interests with those of the shareholders.
• The vesting schedules encourage long-term performance and retention of the CEO.

Future Outlook

The performance restricted stock units are tied to the company's EBITDA performance over the next three years, incentivizing the CEO to drive profitability.

Industry Context

Stock grants are a common form of executive compensation in publicly traded companies, aligning management's interests with those of shareholders and incentivizing long-term value creation.

Comparison to Industry Standards

• Executive compensation packages, including stock grants, are common across publicly traded companies to incentivize performance.
• The vesting schedules are typical for restricted stock grants, encouraging long-term commitment from the executive.
• Performance-based equity awards, such as the performance restricted stock units tied to EBITDA, are increasingly used to align executive compensation with specific financial goals.

Stakeholder Impact

• Shareholders may view the stock grants positively as they incentivize the CEO to improve company performance.
• Employees may be motivated by the alignment of the CEO's interests with the company's success.

Key Dates