Form 4: Union Pacific EVP Exercises Options, Sells Shares

Union Pacific's EVP of Operations, Eric J. Gehringer, exercised stock options and subsequently sold a portion of the acquired shares to cover tax obligations.

Summary

• Eric J. Gehringer, Executive Vice President of Operations for Union Pacific Corp (UNP), reported transactions on February 12, 2026.
• Gehringer exercised non-qualified stock options to acquire 5,271 shares of common stock at an exercise price of $161.57 per share.
• A total of 4,063 shares were disposed of at a price of $262.81 per share to cover tax withholding obligations related to the option exercise and the conversion of restricted stock units.
• Following these transactions, Gehringer directly owns 47,958.3776 shares of Union Pacific common stock.
• Additionally, Gehringer indirectly holds 12,989.067 shares through a deferral account, representing fully vested stock units payable in common stock upon termination of employment or a specified date.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a routine, slightly positive event where an executive realized value from long-term incentives, with sales primarily for tax obligations, maintaining substantial overall ownership.

Positives

• The executive exercised stock options, indicating a realization of value from prior compensation incentives.
• The exercise price of $161.57 is significantly lower than the market price of $262.81 at the time of sale, demonstrating substantial in-the-money value for the options.
• The executive maintains a significant direct and indirect beneficial ownership in the company, totaling 60,947.4446 shares, aligning management interests with shareholders.

Negatives

• A portion of the acquired shares (4,063 shares) was sold, which reduced the executive's direct ownership, although this was primarily for tax withholding purposes.

Industry Context

StockSavvy.ai notes that executive stock option exercises and subsequent sales for tax purposes are common occurrences in publicly traded companies, reflecting standard executive compensation practices within the railroad and transportation industry.

Stakeholder Impact

• Shareholders gain transparency into executive compensation realization and ownership levels, which can influence perceptions of management alignment with shareholder interests.

Key Dates

Keywords

UNP, Union Pacific, Form 4, Insider Transaction, Stock Options, Executive Compensation, Equity, Railroad