ABT
Abbott Laboratories
NYSE
Form 4: Abbott Laboratories Executive Vice President Acquires Shares and Stock Options
Sentiment:
SEC Form 4 Filing
27 February 2025 6:47 PM
Daniel Gesua Sive Salvadori, Executive Vice President of Abbott Laboratories, reports acquisition of common shares and stock options.
Summary
- On February 25, 2025, Daniel Gesua Sive Salvadori, an Executive Vice President at Abbott Laboratories, acquired 16,534 common shares without par value at a price of $0.
- These shares 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.
- Salvadori also acquired an option to buy 61,580 common shares at an exercise price of $135.42, which becomes exercisable in annual increments starting February 25, 2026.
- Following these transactions, Salvadori beneficially owns 142,231 common shares and options for 61,580 shares.
Sentiment
Score: 7
Explanation: The document reflects a standard executive compensation practice, indicating a positive alignment of interests between management and shareholders. The performance-based vesting adds a layer of incentivization, contributing to a moderately positive sentiment.
Positives
- The acquisition of shares and stock options aligns the executive's interests with the company's performance.
- The performance-based vesting of the restricted stock award incentivizes the executive to achieve specific financial targets for Abbott Laboratories.
Future Outlook
The stock options become exercisable in annual increments starting February 25, 2026, suggesting a long-term incentive plan for the executive.
Industry Context
Executive compensation through stock options and restricted stock awards is a common practice in the pharmaceutical and healthcare industry to align management's interests with shareholder value.
Comparison to Industry Standards
- Companies like Johnson & Johnson and Medtronic 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.
Stakeholder Impact
- The acquisition of shares and stock options can positively impact shareholders by aligning executive interests with company performance.
- Employees may view this as a positive sign of leadership commitment to the company's success.
Key Dates
- 02/25/2025: Date of transaction: Acquisition of common shares and stock options.
- 02/25/2026: First date that 20,526 of the stock options become exercisable.
- 02/25/2027: Second date that 20,527 of the stock options become exercisable.
- 02/25/2028: Third date that 20,527 of the stock options become exercisable.
- 02/24/2035: Expiration date of the stock options.
- 02/27/2025: Date of report filing.
Keywords
ABT
Abbott Laboratories
NYSE
Sector: TBD
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