Hormel (HRL) Director Adds 2,546.48 Deferred Shares; Holdings Now ~85k
Rhea-AI Filing Summary
Steven Andrew White, a director of Hormel Foods Corporation (HRL), reported an acquisition of 2,546.48 phantom stock units on 09/30/2025 under the company’s 2018 Incentive Compensation Plan. Each phantom unit equals one share of common stock and the reported price per unit was $24.74. After the grant and conversions of dividend equivalents through the transaction date, the reporting person’s total phantom/beneficial holdings equal 37,967.921 shares (direct) and there is an indirect holding of 47,127 shares through a spouse’s irrevocable trust. The phantom units become payable in shares on a director’s termination (lump sum or up to ten annual installments) or immediately if separation occurs within six months after a defined change in control.
Positive
- 2,546.48 phantom stock units acquired, increasing director alignment with shareholders
- Conversion of dividend equivalents added to holdings (covers period from 03/31/2025 through the transaction date)
- 37,967.921 beneficial direct units and 47,127 indirect shares via spouse’s trust show significant director ownership
Negative
- None.
Insights
Director received phantom units aligning compensation with shareholder value.
This Form 4 discloses a nonemployee director grant of 2,546.48 phantom stock units under the 2018 Incentive Compensation Plan, which convert to common shares after service ends. Such deferred equity grants are a common governance practice to align director interests with long‑term shareholders without immediate dilution.
The filing also shows the director holds 37,967.921 beneficial direct phantom/stock equivalents and an indirect stake of 47,127 shares via a spouse’s trust, indicating meaningful ownership relative to board oversight.
Transaction is a compensatory grant, not an open‑market purchase or sale.
The reported acquisition code (A) reflects receipt of phantom units, with a reported unit price of $24.74. The explanation states additional units resulted from conversion of dividend equivalents from 03/31/2025 through the transaction date, increasing the director’s deferred equity balance.
The units vest to shares upon termination or upon separation within six months after a change in control, which is a clear pay‑out trigger disclosed in the filing.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Common Stock | 2,546.48 | $24.74 | $63K |
| holding | Common Stock | -- | -- | -- |
Footnotes (1)
- Represents phantom stock units for deferrals under the Hormel Foods Corporation Nonemployee Director Deferred Stock Subplan pursuant to the Hormel Foods Corporation 2018 Incentive Compensation Plan (the "2018 Incentive Compensation Plan"). Each phantom stock unit is the equivalent of one share of common stock. The phantom stock units become payable in shares of common stock in one lump sum, or in up to ten annual installments, at the election of the reporting person, on February 15 of the year following termination of service as a director, or such later date as is elected by the reporting person. In addition, the phantom stock units become payable in shares of common stock in one lump sum immediately upon a director's separation from service within six months following a change in control (as defined in the 2018 Incentive Compensation Plan). Reflects additional phantom stock units received by the Reporting Person upon conversion of dividend equivalents from March 31, 2025 through the date of the reported transaction.
