Form 4: Sysco Executive Jennifer L. Johnson Reports Acquisition of Stock and Options

Jennifer L. Johnson, SVP and CAO of Sysco Corp, reports the acquisition of restricted stock units and stock options.

Summary

• On August 21, 2024, Jennifer L. Johnson, SVP and CAO of Sysco Corp, acquired 3,874 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.
• Johnson also acquired 10,203 stock options with an exercise price of $76.54.
• 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.
• No options may be exercised prior to August 21, 2025, and the options will expire on August 20, 2034.
• Following these transactions, Johnson beneficially owns 12,714 shares of common stock and 10,203 stock options.

Sentiment

Score: 6

Explanation: The sentiment is neutral. This is a routine filing related to executive compensation. It doesn't indicate any specific positive or negative news about the company's performance.

Positives

• The grant of restricted stock units and stock options to a key executive like the SVP and CAO suggests the company's commitment to aligning management's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the executive.

Industry Context

Executive compensation packages including stock options and restricted stock units are common in publicly traded companies to incentivize performance and align executive interests with shareholder value. Sysco, as a large corporation, likely uses these tools to attract and retain key personnel.

Comparison to Industry Standards

• Sysco's executive compensation practices, including the use of stock options and restricted stock units, are generally in line with industry standards for large, publicly traded companies.
• Companies like United Natural Foods (UNFI) and Performance Food Group (PFGC), which are competitors of Sysco, also utilize similar compensation strategies to incentivize their executives.
• The vesting schedules and exercise prices are typical components of these compensation packages, designed to reward long-term value creation.

Stakeholder Impact

• Shareholders may view the grant of stock options and restricted stock units as a positive sign, indicating that management's interests are aligned with theirs.
• Employees may see this as a sign of stability and investment in the company's leadership.

Key Dates