Form 4: Carrier Global Corp Director Acquires Stock Units as Part of Deferred Compensation Plan

Director Charles M. Holley acquired 3,765.4552 stock units of Carrier Global Corp as part of the company's Board of Directors Deferred Stock Unit Plan.

Summary

• On April 18, 2024, Charles M. Holley, a director of Carrier Global Corp, acquired 3,765.4552 stock units.
• The acquisition was made under the Carrier Global Corporation Board of Directors Deferred Stock Unit Plan.
• These stock units are part of the director's annual compensation for service as a non-employee director.
• The price of the stock at the time of the transaction was $53.38.
• Following the transaction, Holley beneficially owns 32,339.3568 shares of Carrier Global Corp.
• The Deferred Stock Units (DSUs) will be converted into an equal number of shares of Carrier common stock upon resignation, removal, or retirement from the Board.
• The shares will be distributed either in a lump-sum or in installments, based on the director's previous election.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating stable corporate governance practices. The sentiment is neutral to slightly positive as it shows alignment of director interests with shareholders.

Positives

• The acquisition of stock units by a director demonstrates alignment with shareholder interests.
• The Deferred Stock Unit Plan incentivizes long-term commitment from board members.

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

Deferred compensation plans are a common practice for compensating non-employee directors, aligning their interests with the long-term performance of the company. This is a standard method used by publicly traded companies to attract and retain qualified board members.

Comparison to Industry Standards

• Many companies, such as United Technologies (prior to its split), Lockheed Martin, and Boeing, utilize deferred stock unit plans for their non-employee directors.
• The structure of Carrier's plan, with DSUs converting to common stock upon departure from the board, is consistent with industry norms.
• The value of the stock units granted as compensation is generally benchmarked against peer companies to ensure competitive compensation packages for directors.

Stakeholder Impact

• Shareholders may view the director's acquisition of stock units positively, as it aligns their interests with the company's long-term success.
• The compensation structure can help retain experienced board members, benefiting the company's strategic direction.

Key Dates