Arthur J. Gallagher (NYSE: AJG) VP exercises options, sells 3,500 shares
Rhea-AI Filing Summary
Arthur J. Gallagher & Co. (AJG) executive Christopher E. Mead, a vice president, reported an option exercise and same-day sale. He exercised 3,500 non-qualified stock options at an exercise price of $86.17 per share for 3,500 shares of common stock, then sold 3,500 common shares at $257.025 per share.
Mead continues to hold derivative and deferred equity interests, including phantom stock linked to 21,943.184 underlying common shares, several non-qualified stock option grants with exercise prices between $127.90 and $337.74, 1,982.8313 notional stock units payable after separation from service, and 491.098 common shares held indirectly through a Gallagher 401(k) plan account.
Positive
- None.
Negative
- None.
Insider Trade Summary
Exercise and Sale: 3,500 shares ($598K approx. pre-tax spread)
Exercise and Sale
12 txns
Insider
Mead Christopher E
Role
VICE PRESIDENT
Sold
3,500 shs ($900K)
Approx. gross sale proceeds
$900K
Approx. exercise cost
$302K
Approx. pre-tax spread
$598K
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Non-qualified Stock Option F1 | 3,500 | $0.00 | $0.00 |
| Exercise | Common Stock | 3,500 | $86.17 | $302K |
| Sale | Common Stock | 3,500 | $257.025 | $900K |
| holding | Phantom Stock F2, F3 | -- | -- | -- |
| holding | Non-qualified Stock Option F4 | -- | -- | -- |
| holding | Non-qualified Stock Option F1 | -- | -- | -- |
| holding | Non-qualified Stock Option F1 | -- | -- | -- |
| holding | Non-qualified Stock Option F5, F1 | -- | -- | -- |
| holding | Non-qualified Stock Option F6 | -- | -- | -- |
| holding | Non-qualified Stock Option F7 | -- | -- | -- |
| holding | Notional Stock Units F8, F9 | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Non-qualified Stock Option — 62,720 shares (Direct);
Common Stock — 22,223.4077 shares (Direct);
Phantom Stock — 21,943.184 shares (Direct);
Notional Stock Units — 1,982.8313 shares (Direct);
Common Stock — 491.098 shares (Indirect, Gallagher 401(k) plan account)
Footnotes (9)
- F1. One-third of this stock option becomes exerciseable on each of the 3rd, 4th, and 5th anniversaries of the grant date.
- F2. Each share of phantom stock represents a right to receive one share of Gallagher common stock.
- F3. These shares represent awards under the Age 62 Plan, a nonqualified deferred compensation plan of the Company, which have been deemed invested in Company common stock at the election of the reporting person. Participants vest in these awards when they attain age 62, or after a one-year period for participants who have attained age 61.
- F4. One-third of this stock option becomes exercisable on each of the 3rd, 4th, and 5th anniversaries of the grant date.
- F5. Closing price of Gallagher common stock on February 28, 2025.
- F6. One-third of this stock option becomes exercisable on each of the 3rd, 4th, and 5th anniversaries of the grant date.
- F7. One-third of this stock option becomes exercisable on each of the 3rd, 4th, and 5th anniversaries of the grant date.
- F8. Each notional stock unit represents a right to receive one share of Gallagher common stock.
- F9. The notional stock units become payable in July 2026 and following the reporting person's separation from service with Gallagher.
Key Figures
Options exercised: 3,500 shares of Non-qualified Stock Option
Option exercise price: $86.17 per share
Common shares sold: 3,500 shares
+5 more
8 metrics
Options exercised
3,500 shares of Non-qualified Stock Option
Exercised into common stock on 2026-08-19
Option exercise price
$86.17 per share
Exercise price for 3,500 non-qualified stock options
Common shares sold
3,500 shares
Sale of common stock on 2026-08-19
Sale price per share
$257.025 per share
Price for 3,500 AJG common shares sold
Phantom stock underlying shares
21,943.184 shares
Each phantom share represents one AJG common share
Notional stock units underlying shares
1,982.8313 shares
Payable in July 2026 and after separation from service
Largest remaining option grant underlying shares
12,344 shares
Non-qualified stock option at $228.20 expiring 2033-03-01
Indirect 401(k) holdings
491.098 shares
Common stock held in Gallagher 401(k) plan account
Key Terms
Non-qualified Stock Option, Phantom Stock, notional stock unit, Age 62 Plan, +1 more
5 terms
Non-qualified Stock Option financial
"Non-qualified Stock Option becomes exercisable on each of the 3rd, 4th, and 5th anniversaries"
A non-qualified stock option (NSO) is a contract that lets an employee or service provider buy company shares at a fixed price for a set period, like a voucher to purchase stock later at today’s price. It matters to investors because exercising NSOs creates ordinary income for the holder and can increase share count, affecting a company’s earnings and ownership mix; think of it as a future sale that can dilute existing shareholders and has immediate tax consequences for the recipient.
Phantom Stock financial
"Each share of phantom stock represents a right to receive one share"
A phantom stock is a form of compensation that gives employees or executives the benefits of stock ownership, such as the increase in stock value, without actually giving them real shares. It acts like a promise to pay the employee the equivalent value of company stock later, often as a bonus or incentive. This allows companies to motivate and reward staff without diluting ownership or transferring actual shares.
notional stock unit financial
"Each notional stock unit represents a right to receive one share"
Age 62 Plan financial
"These shares represent awards under the Age 62 Plan, a nonqualified deferred"
nonqualified deferred compensation plan financial
"awards under the Age 62 Plan, a nonqualified deferred compensation plan of the Company"
A nonqualified deferred compensation plan is an arrangement where an employer lets select employees postpone receiving part of their pay or bonuses until a future date, often at retirement, so taxes are paid later. It matters to investors because these payouts are typically unsecured promises by the company—like an internal IOU—so they create future cash obligations and expose the company to extra liability risk if the business falters, and they also reveal how executives are being paid and motivated.
FAQ
What insider transactions did AJG vice president Christopher E. Mead report on this Form 4?
Christopher E. Mead reported exercising 3,500 non-qualified stock options at an exercise price of $86.17 per share into 3,500 shares of Arthur J. Gallagher & Co. common stock and then selling 3,500 common shares at a price of $257.025 per share.
What option exercise did Christopher E. Mead report for AJG on August 19, 2026?
He exercised 3,500 non-qualified stock options for Arthur J. Gallagher & Co. common stock at an exercise price of $86.17 per share, with the options originally expiring on March 12, 2027.
What phantom stock holdings linked to AJG common stock does Christopher E. Mead report?
Christopher E. Mead reports phantom stock representing rights to receive 21,943.184 shares of Arthur J. Gallagher & Co. common stock. Each share of phantom stock represents a right to receive one share of Gallagher common stock, according to the disclosure.
What notional stock units tied to AJG does Christopher E. Mead hold and when are they payable?
He holds notional stock units linked to 1,982.8313 underlying Arthur J. Gallagher & Co. common shares. The notional stock units become payable in July 2026 and following his separation from service with Gallagher.
What remaining stock options for AJG common stock does Christopher E. Mead report holding?
He reports several non-qualified stock option positions on Arthur J. Gallagher & Co. common stock, including grants over 12,344, 11,725, 8,420, 8,264, 7,368, and 7,009 underlying shares with exercise prices between $127.90 and $337.74 and expirations from 2028 to 2033.
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