Farrell Michael J. 4

What Happened Michael J. Farrell, ResMed’s Chairman and CEO, exercised 4,991 stock options (option exercise code M) and immediately sold the resulting 4,991 shares in an open-market transaction on February 9, 2026. The exercise price was $146.34 per share (total exercise cost $730,383). The shares were sold at a weighted-average price of $273.78 per share for aggregate proceeds of $1,366,436, generating a gross difference of about $636,053 before taxes and fees. The filing also records the derivative conversion/settlement associated with the exercised options.

Key Details

• Transaction date: February 9, 2026; Form 4 filed February 10, 2026 (appears timely).
• Exercise: 4,991 options at $146.34 = $730,383 (acquired).
• Sale: 4,991 shares at weighted avg $273.78 = $1,366,436 (disposed). Price range across trades: $270.25–$276.35.
• Net immediate outcome: exercised options and sold same-day (cashless-style) for net proceeds before tax ≈ $636,053.
• Footnotes: Transaction executed under a pre-established Rule 10b5‑1 plan adopted Oct 31, 2024. Options vest 1/3 per year (date shown represents when options first become exercisable).
• Shares owned after the transaction: not specified in the provided filing excerpt.

Context This was an option exercise followed by an immediate sale under a Rule 10b5‑1 plan, a common way executives monetize vested options while following prearranged trading rules. Such transactions are routine and do not, by themselves, indicate management’s forward-looking view of the company.