PC Connection (NASDAQ: CNXN) CEO exercises 10,000 RSUs, 3,935 shares withheld for taxes
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
PC Connection, Inc. President & CEO Timothy J. McGrath exercised restricted stock units that converted into 10,000 shares of common stock on a one-for-one basis. These units were part of an award granted in February 2018 that vested in tranches through April 2027.
Of the newly acquired shares, 3,935 shares were withheld at $59.98 per share to cover tax obligations, a non-market transaction classified as a tax-withholding disposition. After these actions, McGrath directly holds 290,343 shares of PC Connection common stock, reflecting a routine compensation-related vesting and exercise event rather than an open-market trade.
Positive
- None.
Negative
- None.
Insider Trade Summary
10,000 shares exercised/converted
Mixed
3 txns
Insider
MCGRATH TIMOTHY J
Role
President & CEO
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units | 10,000 | $0.00 | -- |
| Exercise | Common Stock | 10,000 | $0.00 | -- |
| Tax Withholding | Common Stock | 3,935 | $59.98 | $236K |
Holdings After Transaction:
Restricted Stock Units — 10,000 shares (Direct);
Common Stock — 294,278 shares (Direct)
Footnotes (1)
- The restricted stock units convert into common stock on a one-for-one basis. The restricted stock units were granted under the PC Connection, Inc. Amended and Restated 2007 Stock Incentive Plan on February 13, 2018. 10,000 of the shares vested on April 1, 2026, and the remaining shares are scheduled to vest on April 1, 2027.
Key Figures
RSUs exercised: 10,000 shares
Tax withholding shares: 3,935 shares
Tax withholding price: $59.98 per share
+2 more
5 metrics
RSUs exercised
10,000 shares
Restricted stock units converted into common stock on April 1, 2026
Tax withholding shares
3,935 shares
Shares withheld to cover tax at $59.98 per share
Tax withholding price
$59.98 per share
Value used for tax-withholding disposition of 3,935 shares
Shares held after transactions
290,343 shares
Common stock directly owned by CEO after April 1, 2026 transactions
Exercise shares per transaction summary
10,000 shares
Total derivative exercise shares reported in transactionSummary
Key Terms
Restricted Stock Units, tax-withholding disposition, Amended and Restated 2007 Stock Incentive Plan
3 terms
Restricted Stock Units financial
"The restricted stock units convert into common stock on a one-for-one basis."
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
tax-withholding disposition financial
"Payment of exercise price or tax liability by delivering securities"
A tax-withholding disposition is an event or transaction—such as selling or transferring securities, exercising options, or receiving compensation—that triggers a requirement to hold back part of the payment and remit it to tax authorities. It matters to investors because it reduces the cash they receive immediately and can change the timing and amount of taxable income, like a cashier taking a portion of your sale proceeds to pay taxes before you get the rest.
Amended and Restated 2007 Stock Incentive Plan financial
"The restricted stock units were granted under the PC Connection, Inc. Amended and Restated 2007 Stock Incentive Plan"
FAQ
What did PC Connection (CNXN) CEO Timothy McGrath report in this Form 4?
Timothy McGrath reported exercising restricted stock units that converted into 10,000 common shares. The award was part of long-term equity compensation, with shares vesting over multiple years under PC Connection’s Amended and Restated 2007 Stock Incentive Plan.
What are the terms of the PC Connection (CNXN) restricted stock units involved?
The restricted stock units convert into common stock on a one-for-one basis. They were granted on February 13, 2018 under the company’s Amended and Restated 2007 Stock Incentive Plan, with tranches vesting on April 1, 2026 and April 1, 2027.
Does this PC Connection (CNXN) Form 4 indicate a trading decision by the CEO?
The filing reflects a derivative exercise and tax withholding, not an open-market trade. It documents routine vesting of long-term equity awards rather than discretionary buying or selling of PC Connection shares in the market.