Form 4: Toro VP Young Reports Performance Share Award Payout

Toro Company's VP, Grant Young, reported the payout of a performance share award and acquisition of restricted stock units.

Summary

• Grant Young, VP, Golf, Grounds & Irrigation at The Toro Company (TTC), reported changes in his beneficial ownership.
• Young acquired 266 Performance Share Units on December 17, 2025, representing the payout of a Fiscal 2023-2025 Performance Share Award.
• The award payout was approved by the Compensation & Human Resources Committee on December 9, 2025, and conditioned on Fiscal 2025 financial results released on December 17, 2025.
• The payout was deferred into performance share units under The Toro Company Deferred Compensation Plan for Officers.
• Beneficial ownership of Performance Share Units increased to 2,513.27, including 11.183 units from dividend reinvestment.
• Young also holds 1,881.834 shares of Common Stock directly and 2,552.722 shares indirectly through The Toro Company Retirement Plan, which includes 12.699 net shares from dividend reinvestment.
• Additionally, Young holds 3,438 Restricted Stock Units, each representing a contingent right to receive one share of TTC common stock.
• These Restricted Stock Units will vest in three equal annual installments, commencing on the first anniversary of October 10, 2025.

Sentiment

Score: 7

Explanation: The filing details a routine executive compensation event, specifically the payout of a performance award, which implies the company met its performance targets. This is generally positive for the executive and reflects well on past company performance, but is not a major market-moving event.

Positives

• The payout of the Performance Share Award indicates that The Toro Company met its performance targets for the Fiscal 2023-2025 period, reflecting positive company performance.
• The executive's continued accumulation of equity through dividend reinvestment features in both the Deferred Plan and the Retirement Plan demonstrates ongoing alignment with shareholder interests.

Future Outlook

The Restricted Stock Units held by Grant Young are scheduled to vest in three equal annual installments, commencing on the first anniversary of October 10, 2025, indicating future equity accumulation for the executive.

Industry Context

This filing reflects standard executive compensation practices within the manufacturing and equipment industry, where performance-based equity awards and restricted stock units are common tools to incentivize and retain key management personnel, aligning their interests with long-term company performance.

Related Party Transactions

• The acquisition of Performance Share Units and holding of Restricted Stock Units by Grant Young, an officer of The Toro Company, constitutes a related party transaction as part of his executive compensation package.

Stakeholder Impact

• Shareholders: The payout of performance awards suggests that the company achieved its financial targets, which is generally positive for shareholder value. Executive equity ownership aligns management interests with shareholder interests.
• Employees: The compensation structure for executives can set a precedent or reflect the overall compensation philosophy within the company.

Next Steps

• The Restricted Stock Units will vest in three equal annual installments, commencing on the first anniversary of October 10, 2025.

Key Dates

Keywords

Toro Company, TTC, Grant Young, SEC Form 4, Insider Transaction, Executive Compensation, Performance Share Units, Restricted Stock Units, Equity Award, Beneficial Ownership