Form 4: Clorox Director Awarded Deferred Stock Units

Clorox Director Stephen B. Bratspies received an annual award of 1,637.8577 Deferred Stock Units, to be settled in company stock upon his departure.

Summary

• Stephen B. Bratspies, a Director of The Clorox Company (CLX), was awarded 1,637.8577 Deferred Stock Units (DSUs).
• This award was an annual grant made pursuant to the company's 2005 Stock Incentive Plan.
• The transaction date for this award was December 31, 2025.
• The DSUs will be settled 100% in Clorox common stock upon the reporting person's retirement or other termination of service as a Director.
• The price of the derivative security (DSU) was reported as $0.0000, indicating it was an award rather than a purchase.

Sentiment

Score: 7

Explanation: The filing reports a routine, expected compensation event for a director, which is generally a neutral to slightly positive signal as it aligns management interests with shareholders. It does not indicate any significant operational or financial changes.

Positives

• The award of Deferred Stock Units aligns the director's long-term interests with those of the shareholders, as the value is tied to the company's stock performance.
• This is a standard component of director compensation, indicating continuity in governance and compensation practices.

Future Outlook

The Deferred Stock Units are scheduled to be settled 100% in Clorox common stock upon the reporting person's retirement or other termination of service as a Director, providing a future equity payout.

Management Comments

• The award is an 'Annual award of Deferred Stock Units pursuant to the 2005 Stock Incentive Plan'.

Industry Context

The award of Deferred Stock Units to a director is a common practice in corporate governance across various industries, serving as a form of long-term incentive compensation and aligning director interests with shareholder value.

Comparison to Industry Standards

• This type of equity-based compensation, specifically Deferred Stock Units, is a widely adopted practice for non-employee directors in publicly traded companies, comparable to compensation structures at peers like Procter & Gamble (PG) or Kimberly-Clark (KMB).
• The settlement upon termination of service is a standard feature designed to retain directors and defer compensation until their departure.

Corporate Governance

Related Party Transactions

• The award of Deferred Stock Units to Stephen B. Bratspies, a Director, constitutes a related party transaction as it involves compensation from the company to an insider.

Stakeholder Impact

• Shareholders: The award aligns the director's financial interests with long-term shareholder value, as the DSUs are settled in company stock.
• Employees: No direct impact on general employees is indicated by this specific filing.

Next Steps

• The Deferred Stock Units will be settled in Clorox common stock upon the reporting person's retirement or other termination of service as a Director.

Key Dates

Recommendation

This Form 4 reports a routine annual award of Deferred Stock Units to a director, which is a standard compensation practice and does not provide new information to warrant a change in investment recommendation. It aligns the director's interests with shareholders but does not indicate any fundamental shift in the company's prospects or financial health that would alter a 'hold' stance.

Keywords

Clorox, CLX, Deferred Stock Units, DSU, Stock Incentive Plan, Director Compensation, SEC Form 4, Insider Transaction