Pesch Michael Robert 4

What Happened

• Michael Robert Pesch, Vice President of Arthur J. Gallagher & Co. (AJG), had 355.801 notional stock units converted into 355.801 shares of AJG common stock on July 1, 2026. The filing shows an acquisition at an effective price of $229.57 per share, valuing the shares at $81,681. The filing also records the corresponding derivative (the notional units) being disposed/terminated in the conversion (reported at $0 cash proceeds).
• This was a conversion/distribution of deferred compensation (not an open-market buy or sale). It does not necessarily signal a buy or sell decision in the market — it reflects a planned payout under the company’s deferred compensation plan.

Key Details

• Transaction date: July 1, 2026. Filing date: July 6, 2026 (filed after the typical 2-business-day Form 4 deadline).
• Shares acquired: 355.801 at $229.57 per share; total reported value $81,681.
• Disposition line: 355.801 derivative units reported disposed at $0 as part of the conversion/settlement.
• Shares owned after transaction: Not specified in the filing.
• Relevant footnotes: F2 (each notional stock unit = right to one share); F3/F4 (portions payable in July 2026, 2027 and 2028 and upon separation); F1 (some shares held in an irrevocable trust with spouse as trustee); filing remarks state this distribution followed the reporting person’s prior election under the Supplemental Savings and Thrift Plan.
• Transaction code: M = exercise or conversion of a derivative (here, conversion of notional stock units into common stock).

Context

• This was a scheduled distribution of deferred compensation (not a market purchase or sale). The derivative units were converted into actual shares — no immediate open-market sale was reported.
• Such conversions are routine for deferred-compensation plans and are different from insider purchases (which some investors view as bullish) or discretionary sales. The late filing (reported July 6 for a July 1 transaction) is an administrative timing matter and may warrant noting for timely disclosure tracking.