Form 4: Valero EVP & COO Simmons Reports Share Transactions

Valero Energy's EVP & COO, Gary K. Simmons, reported significant acquisitions of common stock from performance share settlements and subsequent dispositions.

Summary

• Gary K. Simmons, EVP & COO of Valero Energy Corp/TX (VLO), reported multiple transactions on January 21, 2026.
• Simmons acquired a total of 27,346 shares of common stock through the settlement of previously awarded performance shares at an exercise price of $0.
• These settlements occurred at various percentages of the base award: 175% for 5,673 shares and 2,165 shares, 200% for 10,457 shares, and 150% for 9,251 shares.
• Following these acquisitions, Simmons disposed of 10,882 shares at $190.33, likely for tax withholding purposes (F transaction code).
• An additional 8,330 shares were disposed of at $190.33 (D transaction code).
• After these transactions, Simmons directly beneficially owns 227,057 shares of common stock, with an additional 13,122.018 shares indirectly held in a thrift plan.

Sentiment

Score: 7

Explanation: The settlement of performance shares at high percentages (150-200%) indicates strong company performance against executive compensation targets, which is a positive signal. While there were dispositions, these are common following vesting events, especially for tax purposes.

Positives

• EVP & COO Gary K. Simmons acquired 27,346 shares of common stock through performance share settlements, indicating successful achievement of performance targets.
• Performance shares settled at favorable percentages: 175%, 200%, and 150% of the base awards, reflecting strong company performance against set metrics.

Negatives

• Gary K. Simmons disposed of 19,212 shares of common stock at $190.33, which includes 10,882 shares for tax withholding and 8,330 shares through a direct sale.

Industry Context

This Form 4 filing details routine executive compensation events, specifically the vesting and settlement of performance shares, which are common mechanisms in the energy sector to align executive incentives with company performance. The disposition of shares for tax purposes and a direct sale are also standard practices following such vesting events.

Stakeholder Impact

• Shareholders: The settlement of performance shares at high percentages suggests strong operational or financial performance by Valero Energy, which could be viewed positively by shareholders. The executive's sale of shares might be seen as a minor negative, but often expected after vesting.
• Employees: The successful vesting of performance shares for a key executive could signal a healthy company performance culture.

Key Dates

Recommendation

While the performance share settlements at high percentages are a positive indicator of Valero's operational performance, the Form 4 itself is an informational filing about insider transactions. It doesn't provide new fundamental data to warrant a 'buy' or 'sell' recommendation based solely on this report. The dispositions, while common, slightly offset the positive of the vesting. Investors should 'hold' and consider this information in the broader context of Valero's financial reports and market conditions.

Keywords

Valero Energy, VLO, Gary K. Simmons, Insider Trading, SEC Form 4, Performance Shares, Stock Transactions, Executive Compensation, Common Stock, Share Disposition