Arthur J. Gallagher & Co. CFO Douglas K. Howell Exercises Options and Sells $8.53M in Stock

Insider Filing Analysis: Arthur J. Gallagher & Co. (NYSE: AJG)

Transaction Overview

On November 2, 2026, Douglas K. Howell, Vice President and Chief Financial Officer of Arthur J. Gallagher & Co., executed an option exercise and subsequent stock sales totaling 30,996 shares of common stock, generating gross proceeds of approximately $8.53 million.

Key breakdown of transactions on November 2, 2026:

1. Option Exercise (M): Exercised 17,130 options at an exercise price of $86.17 per share ($1,476,092.10 strike total), expiring on March 12, 2027.
2. Open Market Sales (S):
   • 17,130 shares sold at $275.00 ($4,710,750.00)
   • 13,374 shares sold at a weighted average price of $275.303 ($3,681,902.32)
   • 492 shares sold at a weighted average price of $275.912 ($135,748.70)

Post-Transaction Holdings

Following these dispositions:

• Direct Ownership: 92,961.323 shares.
• Indirect Ownership: 3,165 shares held by spouse and 491.131 shares held in the Gallagher 401(k) plan account.
• Derivative Holdings: Substantial ongoing exposure through unexercised options, phantom stock, and over 394,000 notional stock units.

Context and Significance

• Nature of Sale: Per filing remarks, these transactions reflect the exercise and sale of expiring stock options along with the sale of existing shares to cover associated tax liabilities and general purposes.
• Trading Significance: Medium. While the gross dollar value is significant ($8.53M), the transaction is primarily administrative—involving options approaching expiration within months and associated tax withholding—rather than a discretionary sentiment shift. The CFO maintains substantial direct equity and deferred equity exposure in the company.