Applied Industrial (AIT) Form 4: VP receives RSUs, performance shares, and SARs
Rhea-AI Filing Summary
Applied Industrial Technologies insider transactions by VP-Sales & Marketing-USSC Jason W. Vasquez on 08/12/2025. The filing shows grant and settlement activity: 473 restricted stock units were granted that vest in three years, 1,465 performance shares were banked for the 2025 performance period (vesting at the end of a three-year program), and 1,269 shares were withheld by the company to satisfy tax withholding related to vested performance shares. Additionally, 1,453 stock appreciation rights (SARs) with an exercise/conversion reference price of $270.68 were granted on 08/12/2025; these SARs vest in annual 25% increments beginning 08/12/2026 and expire 08/12/2035. Following the transactions, Vasquez beneficially owned 866.565 shares indirectly through the company Retirement Savings Plan and held 21,957 shares directly after the reported activity.
Positive
- Executive alignment: Grants of 473 RSUs and 1,465 performance shares create long-term incentives aligned with shareholder outcomes.
- Performance linkage: 1,465 performance shares are banked for the 2025 program and vest at the end of a three-year performance period.
Negative
- Tax withholding: 1,269 shares were withheld to satisfy tax obligations on vested performance shares, reducing the reporting person's net increase in shares.
Insights
TL;DR: Routine equity compensation grants increase executive alignment without indicating immediate liquidity or major dilution.
The Form 4 documents standard equity compensation: time-based restricted stock units (473 RSUs) and performance-based shares (1,465) that vest over three years, plus 1,453 SARs exercisable over a long window with a $270.68 reference price. The withholding of 1,269 shares for taxes is an administrative settlement, not a sale into the market. These awards suggest continued use of long-term equity incentives to retain and align this officer, but the sizes disclosed are modest relative to a public company and do not, by themselves, represent a material change to outstanding share counts or capital structure.
TL;DR: Grants follow common governance practices; vesting schedules and performance metrics preserve shareholder alignment.
The grant structure—three-year vesting for RSUs and performance shares plus SARs with staggered annual vesting—reflects standard retention and performance alignment design. The filing states performance shares were "banked" for 2025 performance, indicating a pending determination mechanism tied to a multi-year program. The withholding of 1,269 shares to satisfy tax obligations is routine and documented. No unusual acceleration, related-party transactions, or departures from typical award terms are disclosed in this form.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Stock Appreciation Rights | 1,453 | $0.00 | -- |
| Grant/Award | Common Stock | 473 | $0.00 | -- |
| Grant/Award | Common Stock | 1,465 | $0.00 | -- |
| Tax Withholding | Common Stock | 1,269 | $270.68 | $343K |
| holding | Common Stock | -- | -- | -- |
Footnotes (1)
- Restricted stock units that vest three years from the date of grant and are settled in shares of Applied common stock. Performance shares "banked" as a result of 2025 performance. Performance shares vest at end of three-year program and are settled in shares of Applied common stock. Shares withheld by Registrant to satisfy tax withholding obligations on vesting of performance shares. Stock-only stock appreciation rights which become exercisable in annual increments of 25% commencing one year after the date of grant.
