Pesch Michael Robert 4

What Happened
Michael Robert Pesch, a Vice President at Arthur J. Gallagher & Co. (AJG), exercised 6,750 stock options on March 5, 2026. The exercise recorded an acquisition value of $537,233 (6,750 shares at $79.59). To cover the exercise price and tax withholding, 3,733 shares were withheld/disposed (reported at $228.84 per share, total $854,241). After withholding, Pesch received 3,017 net shares (approximately $690,409 at $228.84/share).

Key Details

• Transaction date: March 5, 2026; Form 4 filed March 9, 2026.
• Option exercise: 6,750 shares exercised at $79.59 (total $537,233). (Code M = option exercise)
• Shares withheld for taxes/exercise: 3,733 shares at $228.84 (total $854,241). (Code F = tax/exercise withholding)
• Derivative entry: 6,750 option units converted/exercised (reported as disposed at $0.00) — indicates the underlying options were cancelled/converted upon exercise.
• Net shares received: 6,750 − 3,733 = 3,017 shares (≈ $690,409 based on $228.84/share).
• Relevant footnotes: F1 confirms shares were withheld to cover tax obligations and the exercise price; F10 (grant date 3/15/2023) and F11/F13 note a vesting schedule (one‑third vesting on 3rd, 4th, and 5th anniversaries).
• Shares owned after the transaction: Not specified in the provided excerpt.

Context

• This was effectively a cashless exercise: options were converted to shares, and a portion of the shares was withheld to satisfy the exercise price and tax withholding rather than paying cash.
• Code glossary: M = option exercise/conversion; F = shares withheld to satisfy tax/exercise obligations.
• These transactions are typical for option exercises and tax withholding and do not by themselves indicate an intent to buy or sell additional shares on the open market.