GALLAGHER J PATRICK JR 4

What Happened
J. Patrick Gallagher Jr., CEO and Director of Arthur J. Gallagher & Co. (AJG), exercised stock options on 2026-03-31 that resulted in the acquisition of 5,345.903 shares at an exercise price of $215.95 per share (aggregate value ≈ $1,154,448). As part of the transaction, 2,369 shares were withheld/disposed to cover applicable income and employment taxes (valued at ≈ $511,586). The filing shows the derivative position was converted into shares as part of the exercise.

Key Details

• Transaction date: 2026-03-31; Form 4 filed 2026-04-01 (timely filing).
• Option exercise: 5,345.903 shares acquired at $215.95 (total ≈ $1,154,448).
• Tax withholding/disposition: 2,369 shares withheld at $215.95 (total ≈ $511,586).
• Reported codes: M = option exercise/conversion; F = withholding/payment of taxes.
• Footnotes: Transactions relate to distribution of vested shares under the Age 62 Plan (nonqualified deferred compensation); withholding of shares to cover income and employment taxes. Vesting schedules referenced (one-third vest on 3rd, 4th, and 5th anniversaries).
• Shares owned after the transaction: not specified in this filing.

Context
This was an option exercise with shares withheld to satisfy tax obligations — a common, routine outcome (often described as a cashless exercise or tax withholding). The Age 62 Plan treatment indicates these were vested deferred-compensation awards converted into company stock rather than an open-market purchase or sale intended as a directional bet on the stock.