Form 4: Sysco EVP and CTO Thomas R. Peck Jr. Reports Acquisition of Stock and Options

Thomas R. Peck Jr., EVP and CTO of Sysco Corp, reports acquiring restricted stock units and stock options, with vesting occurring in future years.

Summary

• On August 21, 2024, Thomas R. Peck Jr., EVP and CTO of Sysco Corp, acquired 10,585 shares of common stock as restricted stock units.
• These restricted stock units were granted by the Compensation and Leadership Development Committee of the Company's Board of Directors pursuant to the 2018 Omnibus Incentive Plan.
• One-third of the restricted stock units will vest in equal installments on August 21, 2025, August 21, 2026, and August 21, 2027, respectively.
• Peck also acquired 27,876 stock options with an exercise price of $76.54 on August 21, 2024.
• These options were also granted by the Compensation and Leadership Development Committee of the Company's Board of Directors pursuant to the 2018 Omnibus Incentive Plan.
• One-third of the shares covered by the grant vest and are exercisable on August 21, 2025, August 21, 2026 and August 21, 2027, respectively, and no options may be exercised prior to August 21, 2025, and options will expire on August 20, 2034.
• Following these transactions, Peck beneficially owns 54,183.897 shares of Sysco common stock and 27,876 stock options.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The granting of stock options and restricted stock units is a common practice and suggests confidence in the company's future. There are no explicitly negative indicators.

Positives

• The acquisition of restricted stock units and stock options suggests confidence in the company's future performance from the executive.

Future Outlook

The vesting schedules for the restricted stock units and stock options indicate a long-term incentive plan for the executive, aligning their interests with the company's future performance over the next three years.

Industry Context

Form 4 filings are routine disclosures for corporate insiders and provide transparency into their transactions in the company's securities. These filings are closely watched by investors to gauge management's sentiment and confidence in the company's prospects.

Comparison to Industry Standards

• Executive compensation packages including stock options and restricted stock units are standard practice among publicly traded companies like Sysco to incentivize and retain key personnel.
• Companies such as United Natural Foods (UNFI) and Performance Food Group (PFGC), which are competitors of Sysco, also utilize similar equity-based compensation plans for their executives.
• The vesting schedules and exercise prices are generally aligned with industry norms to ensure long-term commitment and performance.

Stakeholder Impact

• The acquisition of shares and options by an executive can signal confidence to shareholders.
• The vesting schedule can incentivize the executive to focus on long-term value creation, benefiting shareholders.

Key Dates