Form 4: Badger Meter Director Xia Liu Reports Phantom Stock Unit Acquisition

Director Xia Liu reports acquisition of phantom stock units in Badger Meter, Inc. due to director compensation.

Summary

• On July 2, 2024, Xia Liu, a director of Badger Meter Inc., filed a Form 4 to report changes in beneficial ownership.
• The report indicates that Ms. Liu acquired 85.86 phantom stock units on July 1, 2024, as part of her director compensation.
• These units were accrued in her Director Deferred Compensation Plan account as payment for her 2024 Quarter 3 retainer, amounting to $16,000.
• The phantom stock units were computed at a price of $186.35 per unit, based on the closing price of Badger Meter's common stock on June 28, 2024.
• Following the transaction, Ms. Liu directly owns 2,217.21 phantom stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard director compensation practices, aligning director and shareholder interests.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The compensation plan provides a deferred benefit, potentially incentivizing long-term commitment.

Industry Context

Director compensation through stock and phantom stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Many companies in the industrial sector, such as Roper Technologies and Fortive, use a mix of cash and equity-based compensation for their directors.
• The specific amount and type of equity compensation can vary based on company size, performance, and industry norms.
• Phantom stock units are often used as a way to provide equity-like benefits without diluting existing shareholders.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning management's interests with company performance.

Key Dates