Arthur W. Mergner - Feb 15, 2022 Form 4 Insider Report for STEPAN CO (SCL)

Role: Exec VP, Supply Chain
Signature: /s/ Stephanie J. Pacitti, Attorney-in-Fact for Arthur W. Mergner
Stock symbol: SCL
Transactions as of: Feb 15, 2022
Transactions value $: $8,543
Form type: 4
Date filed: 2/18/2022, 11:20 AM
Previous filing: Jun 16, 2021
Next filing: Oct 31, 2022

Transactions Table

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Ownership	Footnotes
transaction	SCL	Common Stock	Options Exercise		+3.18K	+15.79%		23.3K	Feb 15, 2022	Direct	F1, F2
transaction	SCL	Common Stock	Award	$8.54K	+76.8	+794.07%	$111.26	86.5	Feb 16, 2022	By Esop II Trust	F2, F3

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Underlying Class	Amount	Exercise Price	Ownership	Footnotes
transaction	SCL	Performance Shares	Options Exercise		-2.6K	-100%		0	Feb 15, 2022	Common Stock	2.6K		Direct	F1
transaction	SCL	Stock Appreciation Right	Award	$0	+11.3K		$0.00	11.3K	Feb 16, 2022	Common Stock	11.3K	$111.26	Direct	F4
transaction	SCL	Performance Shares	Award	$0	+2.43K		$0.00	2.43K	Feb 16, 2022	Common Stock	2.43K		Direct	F5
holding	SCL	Share Units						8.48K	Feb 15, 2022	Common Stock	8.48K		Direct	F2, F6, F7

* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id	Content
F1	The performance shares vested upon Stepan Company achieving certain financial targets by December 31, 2021.
F2	Includes exempt acquisitions under Rule 16a-11 pursuant to dividend reinvestments since the date of the reporting person's last report.
F3	Since the date of the reporting person's last ownership report, the reporting person has disposed of 3,474.717 shares held in his ESOP pursuant to a diversification election made under the Internal Revenue Code.
F4	Vests ratably over three years beginning on the date shown.
F5	Each performance share represents a contingent right to receive 1 share of Stepan Company Stock. The performance shares vest upon Stepan Company achieving certain financial targets by December 31, 2024.
F6	Share Units convert on a one-for-one basis into Common Stock.
F7	Share Units are acquired under the Management Incentive Plan (As Amended and Restated Effective January 1, 2015) ("MIP"), a nonqualified deferred compensation plan which allows MIP participants to elect to defer all or a portion of their deferred compensation into accounts pursuant to MIP provisions.