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 quarterly director's fees.

Summary

• Kathryn A Tesija, a director of Clorox Co, reported changes in beneficial ownership.
• On February 9, 2024, she acquired 47.6828 deferred stock units through dividend reinvestment.
• On March 28, 2024, she acquired 171.4454 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 6,306.6332 deferred stock units.

Sentiment

Score: 7

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

Positives

• The acquisition of deferred stock units aligns the director's interests with those of the shareholders, as the units will be settled in Clorox stock upon retirement or termination.

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-based compensation is a common practice in publicly traded companies to align their interests with shareholders.

Comparison to Industry Standards

• Stock-based compensation for directors is a standard practice across various industries, including consumer staples like Clorox.
• Companies like Procter & Gamble (PG) and Unilever (UL) also utilize similar compensation structures for their board members.
• The amount of deferred stock units granted to directors is generally aligned with industry benchmarks for director compensation.

Stakeholder Impact

• The acquisition of deferred stock units by a director can positively influence shareholder confidence by aligning management's interests with those of the shareholders.

Key Dates