Farrell Michael J. 4

What Happened
Michael J. Farrell, ResMed’s Chairman and CEO, exercised 4,991 stock options (converted to shares) and sold those 4,991 shares the same day (July 7, 2026). The options were exercised at $146.34 per share (total reported exercise value $730,383) and the shares were sold in the open market at a weighted average price of $218.55 per share (total proceeds $1,090,771). A related derivative disposal line at $0.00 was also reported in the filing. This sequence—exercise followed by an immediate sale—functions like a cashless exercise (monetizing option value rather than an outright purchase for a long-term position).

Key Details

• Transaction date: July 7, 2026. Form filed July 9, 2026 (timely within the standard Form 4 window).
• Exercise: 4,991 options exercised at $146.34 (aggregate $730,383).
• Sale: 4,991 shares sold at a weighted average of $218.55 ($216.772–$219.700 per share in multiple trades), aggregate proceeds $1,090,771.
• Reported derivative disposal of 4,991 shares at $0.00 (reported in the filing as a related item).
• Plan note: Sale executed under a Rule 10b5-1 trading plan adopted October 31, 2024 (per footnote).
• Vesting/exercise note: Options first became exercisable on the date noted in the filing; options vest one‑third per year (per footnote).
• Shares owned after the transaction: not specified in the provided summary of the filing.

Context

• For retail investors: exercising and immediately selling options is commonly used by insiders to realize gains on vested option awards; the presence of a 10b5-1 plan indicates the sale was preplanned and may reduce the signal associated with the trade.
• Financial outcome (approx.): gross proceeds from the sale were ~$1.09M vs. exercise cost ~$730K, a difference of about $360K before taxes, fees, or withholding.
• No implication should be inferred about management’s long‑term view solely from this routine exercise-and-sell transaction; it is a common way to monetize vested options.