Pachapa Eric 4

What Happened

• Eric Pachapa, VP‑CAO & Controller of AAR CORP (AIR), exercised stock options for a total of 4,983 shares (3,837 @ $18.94; 1,146 @ $67.02), paying $149,478 in exercise costs, and sold the 4,983 shares the same day for aggregate proceeds of approximately $527,881 (weighted avg reported $105.94).
• On the same date he was also granted/awarded shares: 465 restricted shares (F2), 1,395 performance restricted shares (F3), and a 1,250‑share option award that vests in three annual installments beginning Jan 22, 2027 (F4). The awards have $0 reported purchase price.

Key Details

• Transaction date: January 22, 2026; Form 4 filed Jan 23, 2026 (timely).
• Exercises: 3,837 shares @ $18.94 ($72,673) and 1,146 shares @ $67.02 ($76,805).
• Sales: 3,837 shares and 1,146 shares sold at a weighted average reported price of $105.94; total proceeds ≈ $527,881. Footnote F1: sale prices ranged from $105.78 to $106.07 across multiple trades.
• Awards: 465 shares (restricted, F2), 1,395 shares (performance restricted, F3), and a 1,250‑share option award with vesting 33 1/3% each Jan 22 of 2027–2029 (F4).
• Shares owned after transaction: not specified in the filing.
• Codes: M = option exercise/conversion, S = sale, A = grant/award. The filing records both the exercise (acquisition) and the subsequent disposition of those same shares (derivative conversion then sale).

Context

• Because the exercised shares were sold the same day, this appears to be a cashless exercise (exercise followed by immediate sale) rather than an open‑market purchase intended as a longer‑term buy signal.
• The restricted and performance awards are exempt transactions under Rule 16b‑3 and include future vesting; those awards do not necessarily indicate intent to sell.
• Filing was timely (next business day), and the transaction is routine for option exercises and award recognitions.