ABT
Abbott Laboratories
NYSE
Form 4: Abbott Laboratories Executive Earnhardt Acquires Shares and Options
Sentiment:
SEC Form 4 Filing
27 February 2025 5:58 PM
Executive Vice President Lisa D. Earnhardt acquired shares and options in Abbott Laboratories on February 25, 2025, according to a Form 4 filing.
Summary
- Lisa D. Earnhardt, an Executive Vice President at Abbott Laboratories, reported changes in beneficial ownership on February 27, 2025.
- On February 25, 2025, Earnhardt acquired 18,788 common shares without par value at $0, increasing her holdings to 80,250 shares.
- Earnhardt also acquired 69,977 options with an exercise price of $135.42, exercisable starting February 25, 2026, under the 2017 Incentive Stock Program.
- The shares acquired represent a performance-based restricted stock award under the Abbott Laboratories 2017 Incentive Stock Program, vesting over three years based on Abbott's return on equity.
- The employee stock options become exercisable in annual increments starting February 25, 2026.
Sentiment
Score: 6
Explanation: The sentiment is neutral to slightly positive. The acquisition of shares and options by an executive is generally a good sign, but it's a routine filing and doesn't necessarily indicate a major shift in the company's prospects.
Positives
- The acquisition of shares and options by an executive could be seen as a positive sign, indicating confidence in the company's future performance.
- The performance-based restricted stock award aligns executive compensation with the company's return on equity, incentivizing strong performance.
Future Outlook
The vesting schedule of the restricted stock and options suggests a long-term commitment by the executive to the company's success.
Industry Context
Executive compensation packages including stock options and restricted stock are common in the pharmaceutical and healthcare industry to align management interests with shareholder value.
Comparison to Industry Standards
- Stock option grants are a typical component of executive compensation packages in large cap pharmaceutical companies such as Johnson & Johnson (JNJ) and Pfizer (PFE).
- The vesting schedules and performance-based criteria are also common features designed to incentivize long-term value creation.
- The specific number of options and shares granted would need to be compared to peer companies to determine if the compensation is in line with industry standards.
Stakeholder Impact
- The acquisition of shares and options by an executive could have a slightly positive impact on shareholder sentiment.
- The performance-based vesting of the restricted stock aligns executive interests with shareholder value.
Key Dates
- 02/25/2025: Date of transaction for common shares and options acquisition.
- 02/25/2026: First date that a portion of the options become exercisable (23,325 options).
- 02/25/2027: Second date that a portion of the options become exercisable (23,326 options).
- 02/25/2028: Third date that a portion of the options become exercisable (23,326 options).
- 02/24/2035: Expiration date of the options.
- 02/27/2025: Date of Form 4 filing.
Keywords
ABT
Abbott Laboratories
NYSE
Sector: TBD
Filings with Classifications
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Better than expected
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Better than expected
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Proxy Statement
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- The company returned $5.1 billion to shareholders in 2024 and increased its dividend by 7.3% for 2025.
- Abbott's 2030 Sustainability Plan aims to reach 3 billion people a year with its products and services.
Worse than expected
21 February 2025 4:07 PM
Annual Report
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Delay expected
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Annual Report
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Better than expected
22 January 2025 7:13 AM
Quarterly Report
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Better than expected
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Quarterly Report
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Better than expected
16 October 2024 7:37 AM
Quarterly Report
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Worse than expected
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Quarterly Report
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Better than expected
18 July 2024 7:37 AM
Quarterly Report
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Worse than expected
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Quarterly Report
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Better than expected
17 April 2024 7:36 AM
Quarterly Report
- Abbott's results exceeded expectations due to strong organic growth in its base business and better than expected performance in the Medical Devices segment.
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