Form 4: Clorox Director Matthew J. Shattock Reports Changes in Beneficial Ownership

Director Matthew J. Shattock reports acquisition of Clorox deferred stock units through dividend reinvestment and in lieu of quarterly director's fees.

Summary

• Matthew J. Shattock, a director of Clorox, filed a Form 4 disclosing changes in beneficial ownership.
• On February 9, 2024, Shattock acquired 99.2889 deferred stock units through dividend reinvestment.
• On March 28, 2024, Shattock acquired 334.7267 deferred stock units in lieu of quarterly director's fees.
• Following these transactions, Shattock beneficially owns 13,109.8979 deferred stock units.
• These deferred stock units will be settled 100% in Clorox stock upon Shattock's retirement or termination of service as a director.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The director is increasing their stake in the company, which is generally a good sign. The transactions are part of a standard compensation plan.

Positives

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

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, which is 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 Clorox's peers such as Procter & Gamble (PG) and Unilever (UL).
• Deferred stock unit plans are frequently used to incentivize long-term performance and align director interests with shareholder value, similar to practices observed at Colgate-Palmolive (CL) and Kimberly-Clark (KMB).
• The specific amount and terms of the deferred stock units are likely determined by Clorox's compensation committee, benchmarking against industry standards and company performance.

Stakeholder Impact

• The acquisition of deferred stock units by a director can be viewed positively by shareholders as it aligns management's interests with theirs.
• Employees may see this as a sign of confidence in the company's future.

Key Dates