Form 4: Clorox Director Christopher J. Williams Reports Acquisition of Deferred Stock Units

Director Christopher J. Williams reports acquiring additional deferred stock units in The Clorox Company through dividend reinvestment and in lieu of quarterly director's fees.

Summary

• Christopher J. Williams, a director of Clorox, reported changes in beneficial ownership.
• The report details the acquisition of deferred stock units (DSUs) through dividend reinvestment on February 14, 2025, resulting in 150.5952 units.
• Williams also acquired 220.7131 deferred stock units on March 31, 2025, in lieu of quarterly director's fees.
• Each deferred stock unit is convertible to one share of Clorox common stock.
• The DSUs will be settled in Clorox stock upon the director's retirement or termination of service.
• Following these transactions, Williams beneficially owns 18,630.3586 deferred stock units.
• The reporting person has elected to defer fees and reinvest dividends into deferred stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects standard director compensation practices and alignment with shareholder interests through stock ownership.

Positives

• The director's decision to take compensation in stock aligns his interests with those of shareholders.
• Dividend reinvestment increases the director's stake in the company.

Future Outlook

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

Industry Context

Directors often receive stock-based compensation to align their interests with shareholders, a common practice in publicly traded companies.

Comparison to Industry Standards

• Stock-based compensation for directors is a common practice among publicly traded companies, including peers like Procter & Gamble (PG) and Unilever (UL), to align their interests with shareholders.
• Deferred stock unit plans are frequently used to defer compensation until retirement, similar to arrangements seen at companies like Colgate-Palmolive (CL).
• The specific number of units and the value derived from director's fees are company-specific and depend on the compensation policies set by the board.

Stakeholder Impact

• The director's increased stock ownership aligns his interests more closely with those of shareholders.
• The compensation structure does not have a direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

Clorox, Director, Deferred Stock Units, Beneficial Ownership, Dividend Reinvestment, Form 4, CLX