Form 4: Director Todd A. Adams Acquires Phantom Stock Units in Badger Meter Inc.

Todd A. Adams, a director of Badger Meter Inc., acquired phantom stock units as part of his director compensation plan.

Summary

• On July 1, 2024, Todd A. Adams, a director of Badger Meter Inc., acquired 85.86 phantom stock units.
• These units were accrued in his Director Deferred Compensation Plan account as payment for his 2024 Quarter 3 retainer.
• The phantom stock units are equivalent to shares of BMI common stock and will be payable in cash upon termination of service as a director.
• The price was calculated using the 6/28/2024 closing price of the Company's common stock, which was $186.35.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The use of phantom stock units is a common practice, suggesting a stable and well-structured compensation plan.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The director compensation plan provides a means for deferred compensation.

Future Outlook

The phantom stock units become payable in cash upon the reporting person's termination of service as a director.

Industry Context

Director compensation in the form of stock or phantom stock units is a common practice to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Many companies, such as Roper Technologies and Fortive, use stock-based compensation for their directors to incentivize long-term value creation.
• The specific amount and type of equity compensation can vary widely based on company size, industry, and performance.

Stakeholder Impact

• The acquisition of phantom stock units by a director aligns their interests with those of the shareholders, potentially encouraging decisions that benefit the company's long-term performance.

Key Dates