Form 4: Clorox Director Kathryn A. Tesija Reports Acquisition of Deferred Stock Units

Director Kathryn A. Tesija reports acquisition of Clorox deferred stock units through dividend reinvestment and in lieu of quarterly director's fees.

Summary

• Kathryn A. Tesija, a director of Clorox, filed a Form 4 disclosing changes in beneficial ownership.
• On August 30, 2024, she acquired 50.4906 deferred stock units through dividend reinvestment.
• On September 30, 2024, she acquired 161.1319 deferred stock units in lieu of quarterly director's fees.
• These deferred stock units will be settled in Clorox stock upon her retirement or termination of service as a director.
• Following these transactions, Tesija beneficially owns 6,763.3993 deferred stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard director compensation practices and alignment of interests.

Positives

• The acquisition of deferred stock units aligns the director's interests with those of the shareholders.
• Dividend reinvestment indicates confidence in the company's future performance.

Future Outlook

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

Industry Context

Form 4 filings are routine disclosures required by the SEC to provide transparency regarding the transactions of company insiders.

Comparison to Industry Standards

• Director compensation packages often include deferred stock units to align the interests of directors with long-term shareholder value.
• Companies like Procter & Gamble (PG) and Unilever (UL) also use similar compensation strategies for their board members.

Stakeholder Impact

• The disclosure provides transparency to shareholders regarding director compensation and stock ownership.
• The director's acquisition of stock units aligns her interests with those of the shareholders.

Key Dates