Form 4: Clorox Director Christopher J. Williams Acquires Shares and Deferred Stock Units

Director Christopher J. Williams acquired Clorox shares and deferred stock units in lieu of director's fees, according to a recent SEC filing.

Summary

• On June 28, 2024, Christopher J. Williams, a director of Clorox, acquired 238 shares of Clorox common stock at a price of $136.47 per share.
• These shares were received in lieu of a quarterly director's fee.
• Following the transaction, Williams directly owns 450 shares of Clorox common stock.
• On May 10, 2024, Williams also received 141.1188 deferred stock units, which will be settled in Clorox stock upon retirement or termination of service as a director.
• The price of the derivative security is $0.0000.
• Following the transaction, Williams directly owns 16,998.9404 derivative securities.

Sentiment

Score: 6

Explanation: Neutral sentiment as the filing simply reports routine transactions related to director compensation.

Positives

• The acquisition of shares by a director can be seen as a positive signal, indicating confidence in the company's future performance.
• The receipt of deferred stock units aligns the director's interests with the long-term success of the company.

Future Outlook

The deferred stock units will be settled 100% in Clorox stock upon the director's retirement or termination of service.

Industry Context

Directors receiving stock in lieu of fees is a fairly common practice to align interests with shareholders, particularly in large, publicly traded companies like Clorox.

Comparison to Industry Standards

• Stock ownership by directors is a common practice in publicly traded companies.
• Companies like Procter & Gamble (PG) and Unilever (UL) also have similar compensation structures for their board members, often including stock options and deferred stock units.
• The specific amounts and terms can vary based on company size, performance, and industry norms.

Related Party Transactions

• The receipt of stock and deferred stock units in lieu of director's fees constitutes a related party transaction.

Stakeholder Impact

• The transactions have a minor positive impact on shareholders by aligning the director's interests with the company's long-term performance.

Key Dates