ABT
Abbott Laboratories
NYSE
Form 4: Abbott Laboratories Executive Vice President Acquires Shares and Options
Sentiment:
SEC Form 4 Filing
27 February 2025 6:26 PM
Mary K. Moreland, Executive Vice President of Abbott Laboratories, reports acquisition of shares and options, including performance-based restricted stock and employee stock options.
Summary
- Mary K. Moreland, an Executive Vice President at Abbott Laboratories, filed a Form 4 detailing changes in beneficial ownership.
- On February 25, 2025, Moreland acquired 10,712 common shares as a performance-based restricted stock award with a 3-year term, vesting in thirds annually based on Abbott's return on equity.
- Moreland also acquired an employee stock option for 39,896 common shares at an exercise price of $135.42, exercisable in annual increments starting February 25, 2026.
- Following these transactions, Moreland directly owns 101,972 common shares and indirectly owns 11,623 shares through a Profit Sharing Trust.
- She also directly owns options for 39,896 shares.
Sentiment
Score: 6
Explanation: The document reflects standard executive compensation practices. It's neutral in sentiment, indicating routine grants and acquisitions of shares and options.
Positives
- The acquisition of performance-based restricted stock aligns Moreland's interests with the company's performance, specifically its return on equity.
- The granting of employee stock options incentivizes Moreland to contribute to the long-term success of Abbott Laboratories.
- The vesting schedule of the options (annual increments) encourages continued service and commitment.
Future Outlook
The document does not contain explicit forward-looking statements, but the vesting schedule of the restricted stock and options suggests a multi-year commitment from the executive.
Industry Context
Executive compensation packages including stock options and restricted stock are common in the pharmaceutical industry to align management interests with shareholder value and incentivize long-term performance. This filing reflects a standard practice in the industry.
Comparison to Industry Standards
- Companies like Johnson & Johnson (JNJ) and Medtronic (MDT) also utilize stock options and restricted stock units as part of their executive compensation packages.
- The vesting schedules and performance metrics tied to these awards are often benchmarked against industry peers to ensure competitiveness and alignment with shareholder interests.
- The specific terms of Abbott's 2017 Incentive Stock Program, including the return on equity target for restricted stock vesting, would need to be compared to similar programs at peer companies to assess its relative rigor and potential impact on executive behavior.
Stakeholder Impact
- The stock and option awards could potentially increase shareholder value if the executive's performance leads to improved company results.
- The awards incentivize the executive to make decisions that benefit the company and its stakeholders.
Key Dates
- 02/25/2025: Date of earliest transaction: Acquisition of common shares and stock options.
- 02/25/2026: First date that a portion of the stock options become exercisable (13,298 shares).
- 02/25/2027: Second date that a portion of the stock options become exercisable (13,299 shares).
- 02/25/2028: Third date that a portion of the stock options become exercisable (13,299 shares).
- 02/24/2035: Expiration date of the stock options.
- 02/27/2025: Date of Form 4 signature.
Keywords
ABT
Abbott Laboratories
NYSE
Sector: TBD
Filings with Classifications
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Better than expected
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Proxy Statement
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Worse than expected
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Annual Report
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Delay expected
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Annual Report
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Better than expected
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Quarterly Report
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Better than expected
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Quarterly Report
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Better than expected
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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
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