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

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

Summary

• Kathryn A Tesija, a director of Clorox Co, filed a Form 4 on July 2, 2024, reporting changes in beneficial ownership.
• On May 10, 2024, Tesija acquired 52.7936 deferred stock units through dividend reinvestment.
• On June 28, 2024, Tesija acquired 192.35 deferred stock units in lieu of quarterly director's fees.
• Following these transactions, Tesija beneficially owns 6,551.7768 deferred stock units.
• These units will be settled in Clorox stock upon retirement or termination of service as a director.

Sentiment

Score: 7

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

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.
• Receiving stock units in lieu of fees demonstrates a commitment to the company's long-term success.

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 often receive stock-based compensation to align their interests with shareholders, a common practice in corporate governance.

Comparison to Industry Standards

• Stock-based compensation for directors is a common practice among publicly traded companies, including Clorox's competitors like Procter & Gamble (PG) and Unilever (UL), to incentivize long-term value creation.
• Deferred stock unit plans are frequently used to defer compensation until retirement, similar to plans offered by companies such as Colgate-Palmolive (CL).
• The amount of deferred stock units granted to directors is generally benchmarked against peer companies to ensure competitive compensation packages.

Stakeholder Impact

• The acquisition of deferred stock units by a director can positively influence shareholder confidence.
• The director's compensation structure aligns with the long-term interests of the company and its stakeholders.

Key Dates