Form 4: Baxter International CEO Jose Almeida Receives Annual Equity Grant

Baxter International's CEO, Jose Almeida, received an annual equity grant consisting of restricted stock units (RSUs) that vest in three equal annual installments starting March 6, 2025.

Summary

• Jose E. Almeida, CEO of Baxter International, received an annual equity grant on March 6, 2024.
• The grant consists of 142,891 shares of common stock, representing restricted stock units (RSUs).
• These RSUs will vest in three equal annual installments, beginning on March 6, 2025, subject to meeting the vesting requirements outlined in Baxter International Inc.'s 2021 Incentive Plan.
• Almeida also holds 324,976 shares of common stock indirectly through the TKJK-H Revocable Trust.
• A Power of Attorney was executed on March 1, 2024, granting David S. Rosenbloom, Ellen K. Bradford, and Kimberly Olson the authority to act on Almeida's behalf for SEC filings related to Baxter securities.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of management interests with shareholders. It's a neutral to slightly positive event.

Positives

• The equity grant aligns the CEO's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the CEO.

Future Outlook

The performance share units (PSUs) portion of the equity grant is subject to potential disclosure at a later date upon the satisfaction of the related performance and time vesting conditions.

Industry Context

Equity grants are a common practice in the pharmaceutical and medical device industry to incentivize and retain top executives. The specific terms of the grant, such as the vesting schedule and performance metrics, are tailored to align with the company's strategic goals.

Comparison to Industry Standards

• Equity grants for CEOs in the medical device industry typically include a mix of stock options, restricted stock units, and performance-based awards.
• Companies like Medtronic and Johnson & Johnson also use similar equity compensation structures to incentivize their executives.
• The vesting schedules are generally between three to five years, which is consistent with Baxter's three-year vesting period for the RSUs.

Stakeholder Impact

• Shareholders: The equity grant aligns the CEO's interests with those of the shareholders, potentially leading to increased shareholder value.
• Employees: The grant can boost employee morale by demonstrating the company's commitment to its leadership.

Next Steps

• The RSUs will vest in three equal annual installments beginning on March 6, 2025.
• Potential disclosure of the PSU grants at a later date upon satisfaction of performance and time vesting conditions.

Key Dates