Form 4: Church & Dwight Executive Acquires Phantom Stock Under Deferred Compensation Plan

Carlos G. Linares, EVP Chief Technology & Global New Product at Church & Dwight Co. Inc., acquired 26.841 phantom stock shares as part of a deferred compensation plan.

Summary

• Carlos G. Linares, EVP Chief Technology & Global New Product at Church & Dwight Co. Inc. (CHD), acquired 26.841 phantom stock shares.
• The acquisition occurred on July 15, 2025, at a price of $95.51 per phantom stock share.
• These phantom stock shares convert to common stock on a 1-for-1 basis.
• The shares were acquired under the Church & Dwight Co., Inc. Deferred Compensation Plan and are to be settled in cash as prescribed by the Plan.
• Following this transaction, Carlos G. Linares beneficially owns 17,057.754 phantom stock shares.

Sentiment

Score: 6

Explanation: Slightly positive. A routine executive compensation event that aligns executive interests with company performance, indicating stability in compensation practices. Not a major market moving event.

Positives

• The acquisition of phantom stock by an executive aligns their interests with shareholder value, as the value of phantom stock is tied to the company's common stock price.
• Participation in a deferred compensation plan indicates a structured approach to executive incentives and retention.

Risks

• The value of the phantom stock is subject to the future performance of Church & Dwight Co. Inc.'s common stock, introducing market risk for the executive's compensation.
• Settlement in cash means the executive does not directly hold equity, potentially limiting direct voting rights or long-term equity participation compared to direct stock ownership.

Future Outlook

The filing does not provide specific forward-looking statements or guidance beyond the nature of the phantom stock being settled in cash at a future time prescribed by the Deferred Compensation Plan.

Industry Context

This routine executive compensation filing reflects standard practices within the consumer goods industry, where deferred compensation plans and phantom stock awards are common tools for executive retention and alignment with shareholder interests. It does not indicate any broader industry trends or competitive shifts.

Comparison to Industry Standards

• Phantom stock plans are a common form of executive compensation in large, established consumer goods companies like Procter & Gamble (PG) or Colgate-Palmolive (CL), offering executives exposure to stock price appreciation without direct equity ownership until settlement.
• The 1-for-1 conversion to common stock is a standard feature of such plans, similar to how Restricted Stock Units (RSUs) are structured in many S&P 500 companies.
• The acquisition of a relatively small number of phantom shares (26.841) suggests this is likely a periodic accrual under an ongoing plan, rather than a one-time large grant, which is consistent with typical deferred compensation contributions.

Related Party Transactions

• The acquisition of phantom stock by an executive under a deferred compensation plan is a form of related party transaction, representing compensation from the company to a key management person.

Stakeholder Impact

• Shareholders: The transaction aligns executive incentives with shareholder value, as the phantom stock's value is tied to the common stock price. It is a routine compensation disclosure and unlikely to have a significant direct impact on share price.
• Employees: No direct impact on general employees is indicated.

Next Steps

• The phantom stock shares are to be settled in cash at a future time as prescribed by the Church & Dwight Co., Inc. Deferred Compensation Plan.

Key Dates

Keywords

Church & Dwight, CHD, Carlos G. Linares, Phantom Stock, Deferred Compensation, Executive Compensation, SEC Form 4, Insider Transaction