Form 4: Acuity Brands Director W. Patrick Battle Receives Deferred Stock Units

Director W. Patrick Battle of Acuity Brands received 534 deferred stock units (DSUs) as part of his annual director fees.

Summary

• W. Patrick Battle, a director at Acuity Brands, received 534 deferred stock units (DSUs) on January 22, 2025.
• These DSUs were granted as part of his annual director fees, under the company's 2012 Omnibus Stock Incentive Compensation Plan.
• The DSUs will vest on the first anniversary of the grant date or the date of the next annual meeting, whichever is earlier.
• Upon vesting, the DSUs will be payable upon retirement in either a lump sum or five annual installments.
• The value of the DSUs was calculated using an average stock price of $328.00 per share.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction of director compensation, which is generally viewed neutrally to slightly positive as it aligns director interests with shareholders.

Positives

• The grant of DSUs aligns director compensation with the long-term performance of the company.
• The vesting schedule encourages long-term commitment from the director.
• The option for lump sum or installment payments provides flexibility for the director upon retirement.

Industry Context

The granting of stock-based compensation to directors is a common practice in publicly traded companies to align their interests with those of shareholders.

Comparison to Industry Standards

• Granting deferred stock units to directors is a standard practice among publicly listed companies, similar to companies like Eaton Corporation (ETN) and Hubbell Incorporated (HUBB), which also use equity-based compensation to align director interests with shareholder value.
• The vesting period of one year is also typical, aligning with common industry practices for director compensation plans.
• The use of the average stock price over a period of time to determine the value of the grant is a standard method to avoid price manipulation.

Stakeholder Impact

• The granting of DSUs to a director has a minor positive impact on shareholders as it aligns the director's interests with the long-term performance of the company.

Key Dates

Keywords

Deferred Stock Units, DSU, Director Compensation, Stock Incentive Plan, Acuity Brands, AYI, W. Patrick Battle, Director Fees