Franklin Electric (NASDAQ: FELE) director exercises options, uses shares for tax
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Franklin Electric director Gregg C. Sengstack reported routine equity compensation activity involving company common stock. On June 12, 2026, he exercised options to acquire 35,000 shares of common stock at $43.00 per share. To cover tax obligations, 22,587 shares were disposed of at $103.565 per share through a tax-withholding arrangement, rather than an open-market sale, leaving a net increase in his directly held shares.
Following these transactions, Sengstack directly held 130,707 common shares, which include 3,664 restricted shares that vest monthly through April 1, 2027, 11,436 restricted stock units vesting on February 22, 2027, and 115,607 shares owned outright. He also has indirect ownership through several trusts and the Sengstack Family Foundation, which together hold additional blocks of Franklin Electric stock.
Positive
- None.
Negative
- None.
Insider Trade Summary
35,000 shares exercised/converted
Mixed
7 txns
Insider
SENGSTACK GREGG C
Role
null
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | option | 35,000 | $43.00 | $1.50M |
| Exercise | common stock | 35,000 | $43.00 | $1.50M |
| Tax Withholding | common stock | 22,587 | $103.565 | $2.34M |
| holding | common stock | -- | -- | -- |
| holding | common stock | -- | -- | -- |
| holding | common stock | -- | -- | -- |
| holding | common stock | -- | -- | -- |
Holdings After Transaction:
option — 35,569 shares (Direct, null);
common stock — 153,294 shares (Direct, null);
common stock — 29,687 shares (Indirect, By Sengstack Family Foundation)
Footnotes (1)
- Includes 3,664 restricted shares that vest monthly in equal installments through April 1, 2027, 11,436 restricted stock units that vest on 2/22/2027, and 115,607 shares owned outright. Represents shares held of record by the Sengstack Family Foundation, for which the reporting person is the president and over which the reporting person has sole voting and dispositive power. Represents shares held of record by the Gregg Sengstack 2020 Dynasty Trust, for which the reporting person's spouse is the trustee and over which the reporting person does not have sole voting and investment power. Represents shares held of record by the Dianne Sengstack 2020 Dynasty Trust, for which the reporting person is the trustee and over which the reporting person has sole voting and investment power. Represents shares held of record by the Dianne Sengstack 2025 Special Trust, for which the reporting person is the trustee and over which the reporting person has sole voting and dispositive power. The options become exercisable in four equal installments of 1/4 each year, beginning on the first anniversary of the grant date.
Key Figures
Options exercised: 35,000 shares at $43.00
Tax withholding shares: 22,587 shares at $103.565
Direct holdings after transactions: 130,707 shares
+5 more
8 metrics
Options exercised
35,000 shares at $43.00
Common stock options exercised on June 12, 2026
Tax withholding shares
22,587 shares at $103.565
Shares delivered to cover exercise price or tax liability
Direct holdings after transactions
130,707 shares
Common stock directly owned following June 12, 2026 transactions
Remaining options
35,569 options at $43.00
Options outstanding after exercise, expiring February 24, 2027
Restricted shares
3,664 shares
Restricted stock vesting monthly through April 1, 2027
Restricted stock units
11,436 units
RSUs vesting on February 22, 2027
Spouse’s trust holdings
115,000 shares
Indirect ownership via spouse’s trust
Reporting person’s trust holdings
160,000 shares
Indirect ownership via reporting person’s trust
Key Terms
restricted stock units, Dynasty Trust, Special Trust, tax-withholding disposition, +2 more
6 terms
restricted stock units financial
"Includes 3,664 restricted shares that vest monthly... and 11,436 restricted stock units that vest on 2/22/2027"
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.
Dynasty Trust financial
"Represents shares held of record by the Gregg Sengstack 2020 Dynasty Trust..."
Special Trust financial
"Represents shares held of record by the Dianne Sengstack 2025 Special Trust..."
tax-withholding disposition financial
"transaction_action": "tax-withholding disposition""
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.
derivative security financial
"transaction_code_description": "Exercise or conversion of derivative security""
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
dispositive power financial
"for which the reporting person has sole voting and dispositive power"
Dispositive power is the authority to decide the final outcome of an asset, legal claim, contract, or corporate action — in effect the power to dispose of or resolve something. For investors it matters because whoever holds that authority can determine who gets paid, who controls an asset or vote, and how risks and returns are allocated; think of it like holding the key that lets you lock in the winner or loser in a deal.
FAQ
What insider transaction did Gregg C. Sengstack report for FELE?
Gregg C. Sengstack reported exercising options for 35,000 Franklin Electric shares at $43.00 each. As part of this equity compensation event, shares were also disposed of to cover tax obligations via a withholding arrangement rather than an open-market sale.
What does the Form 4 say about Sengstack’s remaining options and vesting schedule?
After the exercise, 35,569 options remain outstanding with a $43.00 exercise price and a February 24, 2027 expiration. A footnote states these options vest in four equal annual installments starting on the first anniversary of the grant date, reflecting staged exercisability.