Form 4: Veralto SVP Kapity's Equity Moves: Options, Sales, New Grants

Veralto Corp's SVP of Water Quality, Melissa Kapity, engaged in a series of stock option exercises, subsequent share sales, and received new equity grants.

Summary

• Melissa Kapity, SVP, Water Quality at Veralto Corp, reported multiple transactions involving company common stock and derivative securities.
• On February 27, 2026, Kapity exercised 2,639 employee stock options at an exercise price of $83.23 per share, acquiring common stock.
• Concurrently on February 27, 2026, Kapity sold 2,639 shares of common stock at $96.6 per share.
• Also on February 27, 2026, Kapity exercised an additional 7,105 employee stock options at an exercise price of $83.23 per share, acquiring common stock.
• Immediately following, on February 27, 2026, Kapity sold 7,105 shares of common stock at $96.6 per share.
• An additional sale of 5,096 shares of common stock occurred on February 27, 2026, at $96.6 per share.
• On March 1, 2026, Kapity was granted 4,491 restricted stock units (RSUs) with a grant price of $0. These RSUs will vest one half on the third and fourth anniversaries of the grant date.
• On March 1, 2026, Kapity was also granted 15,213 employee stock options with an exercise price of $97.43. One half of these options become exercisable on the third and fourth anniversaries of the grant date.
• Following these transactions, Kapity beneficially owns 14,715 shares of common stock directly, 13,192 fully vested employee stock options, 28,414 fully vested employee stock options, and 15,213 newly granted employee stock options.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive event. While there were sales of common stock, these appear to be part of a cashless exercise strategy, and the executive also received significant new equity grants, indicating continued alignment with shareholder interests.

Positives

• Grant of 4,491 restricted stock units (RSUs) to a key executive, aligning long-term interests with shareholders.
• Grant of 15,213 employee stock options, providing further incentive for future performance.
• The exercise of options indicates a belief in the company's value at the exercise price.

Negatives

• Sales of 5,096, 2,639, and 7,105 shares of common stock at $96.6 per share by a key executive, which could be perceived as profit-taking, although likely part of a cashless exercise strategy.

Future Outlook

The filing indicates future vesting schedules for newly granted restricted stock units and exercisability dates for new stock options, with one half vesting/exercisable on the third and fourth anniversaries of March 1, 2026. Existing options that were exercised were fully vested.

Industry Context

StockSavvy.ai notes that these transactions represent routine executive compensation activities, including the exercise of vested stock options and subsequent sales, often to cover taxes and exercise costs, alongside new equity grants designed to incentivize long-term performance. Such activities are common across publicly traded companies as part of their executive compensation packages.

Stakeholder Impact

• Shareholders: May view the new equity grants as a positive sign of management's continued commitment and alignment with long-term company performance. The sales, while likely part of a cashless exercise, represent a reduction in direct share ownership.
• Employees: The granting of stock options and RSUs to an SVP reinforces the company's equity-based compensation strategy, potentially signaling similar opportunities or incentives for other key personnel.

Next Steps

• Vesting of 4,491 restricted stock units, with one half vesting on the third anniversary of March 1, 2026, and the other half on the fourth anniversary.
• Exercisability of 15,213 newly granted employee stock options, with one half becoming exercisable on the third anniversary of March 1, 2026, and the other half on the fourth anniversary.

Key Dates

Keywords

Veralto Corp, VLTO, Insider Trading, Form 4, Stock Options, Restricted Stock Units, Executive Compensation, Equity Grants, Beneficial Ownership