Form 4: Toro Director Koch Receives Equity Awards, Gifts Stock

Toro Company Director D Christian Koch received an annual common stock award and non-qualified stock options, subsequently gifting the stock to a trust.

Summary

• D Christian Koch, a Director of The Toro Company (TTC), reported transactions on November 3, 2025.
• Koch acquired 1,235 shares of Common Stock as an annual award for service as a non-employee director under The Toro Company 2022 Equity and Incentive Plan, priced at $74.21 per share.
• Concurrently, Koch disposed of 1,235 shares of Common Stock via a gift at $74.21 per share.
• Following the gift, 1,235 shares of Common Stock were acquired indirectly by the Dale Christian Koch Trust, also at $74.21 per share, resulting in 13,983 shares beneficially owned indirectly by the trust.
• Koch also received an annual grant of 2,266 Non-Qualified Stock Options for service as a non-employee director, with an exercise price of $74.21 per share.
• These options vest in three equal annual installments, commencing on the first anniversary of the November 3, 2025 grant date, and have an expiration date of November 3, 2035.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive as it reflects routine director compensation aligning interests with shareholders, without any negative implications for the company's operations or financial health.

Positives

• The receipt of common stock and stock options by a director aligns their financial interests with those of the shareholders, encouraging long-term value creation.
• The awards are part of a pre-existing equity and incentive plan, indicating a structured approach to director compensation.

Future Outlook

The non-qualified stock options granted to Director Koch will vest in three equal annual installments, commencing on November 3, 2026, and will expire on November 3, 2035.

Industry Context

The granting of equity awards and stock options to non-employee directors is a standard practice across many industries, including the manufacturing and equipment sector where The Toro Company operates. This compensation structure is designed to align the interests of directors with long-term shareholder value.

Stakeholder Impact

• Shareholders: The equity awards align the director's interests with long-term shareholder value.

Next Steps

• The non-qualified stock options will vest in three equal annual installments, starting on November 3, 2026.

Key Dates

Keywords

Toro Company, TTC, SEC Form 4, Insider Transaction, Director Compensation, Equity Award, Stock Option, Common Stock, Beneficial Ownership