Form 4: Carrier Global Corp Director Acquires Deferred Stock Units

Director Michael M. McNamara acquired 3,709.2544 Deferred Stock Units (DSUs) of Carrier Global Corp on April 18, 2024, as part of his annual compensation.

Summary

• On April 18, 2024, Michael M. McNamara, a director of Carrier Global Corp, acquired 3,709.2544 Deferred Stock Units (DSUs) under the company's Board of Directors Deferred Stock Unit Plan.
• The DSUs were acquired as part of his annual compensation for service as a non-employee director.
• The price of the stock at the time of acquisition was $53.38.
• Following the transaction, McNamara beneficially owns 35,086.6812 shares of Carrier Global Corp.
• The DSUs will be converted into an equal number of shares of Carrier common stock upon resignation, removal, or retirement from the Board, and distributed either in a lump-sum or in installments, as per the director's election.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and well-structured governance practice. The sentiment is neutral to positive as it shows alignment of interests between the director and shareholders.

Positives

• The acquisition of DSUs reflects the director's continued alignment with the company's long-term performance.
• The Deferred Stock Unit Plan incentivizes directors to remain engaged and contribute to the company's success.

Future Outlook

Upon resignation, removal, or retirement from the Board, the DSUs in the director's account under the Plan, including accrued dividend equivalents, are converted into an equal number of shares of Carrier common stock that, at the director's previous election, are distributed either in a lump-sum or in installments.

Industry Context

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

Comparison to Industry Standards

• Deferred Stock Units (DSUs) are a common form of equity compensation for non-employee directors in publicly traded companies, similar to practices at companies like United Technologies (prior to its split) and Raytheon Technologies, which also operate in the aerospace and building systems industries.
• The vesting and distribution terms of Carrier's DSU plan, allowing for lump-sum or installment payments upon departure from the board, are consistent with industry norms designed to retain and incentivize experienced directors.

Stakeholder Impact

• The acquisition of DSUs by a director can positively influence shareholder confidence by demonstrating the director's commitment to the company's long-term success.

Key Dates