Form 4: Abbott Laboratories Executive Vice President Acquires Shares and Options

Louis H. Morrone, Executive Vice President of Abbott Laboratories, reports acquisition of shares and options, including a performance-based restricted stock award and employee stock options.

Summary

• On February 25, 2025, Louis H. Morrone, an Executive Vice President at Abbott Laboratories, acquired 10,232 common shares as a performance-based restricted stock award.
• These shares were acquired at a price of $0.
• Morrone also acquired 38,108 options (right to buy) at a price of $135.42, exercisable in annual increments starting February 25, 2026.
• Following these transactions, Morrone directly owns 72,375 common shares and indirectly owns 12 shares through a Profit Sharing Trust.
• He also directly owns 38,108 derivative securities (options).

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The acquisition of shares and options by an executive is generally seen as a positive sign, indicating confidence in the company's future performance. However, it's a routine filing and doesn't necessarily indicate a major shift in the company's prospects.

Positives

• The acquisition of performance-based restricted stock suggests confidence in Abbott's future performance and ability to meet return on equity targets.
• The granting of employee stock options aligns the executive's interests with those of the shareholders, incentivizing value creation.

Future Outlook

The acquired options become exercisable in annual increments starting February 25, 2026, suggesting a long-term incentive structure.

Industry Context

Executive compensation through stock options and restricted stock is a common practice in the pharmaceutical industry to align management's interests with shareholder value.

Comparison to Industry Standards

• Companies like Johnson & Johnson (JNJ) and Pfizer (PFE) also utilize stock options and restricted stock units as part of their executive compensation packages.
• The vesting schedules and performance metrics associated with these awards often vary based on company-specific goals and industry benchmarks.
• The specific terms of Abbott's 2017 Incentive Stock Program, including the return on equity target, would need to be compared to those of its peers to assess its relative competitiveness.

Stakeholder Impact

• The acquisition of shares and options by an executive can have a positive impact on shareholder sentiment, as it aligns management's interests with those of the shareholders.
• Employees may view the granting of stock options as a positive sign, indicating that the company values their contributions and is committed to their long-term success.

Key Dates