Form 4: Clorox Director Matthew Shattock Increases Stock Holdings

Clorox Director Matthew J. Shattock increased his beneficial ownership of the company's stock through the acquisition of deferred stock units via dividend reinvestment, annual award, and director's fees, signaling continued confidence in the company.

Summary

• Matthew J. Shattock, a Director of The Clorox Company (CLX), reported changes in his beneficial ownership of the company's securities.
• On November 6, 2025, Shattock acquired 199.1684 Deferred Stock Units (DSUs) through dividend reinvestment under the Independent Directors' Deferred Compensation Plan.
• On December 31, 2025, he received an annual award of 1,637.8577 DSUs pursuant to the 2005 Stock Incentive Plan.
• Also on December 31, 2025, Shattock received an additional 520.6784 DSUs in lieu of quarterly director's fees.
• Following these transactions, Shattock beneficially owns a total of 19,428.3663 Deferred Stock Units.
• These DSUs will be settled 100% in Clorox common stock upon his retirement or other termination of service as a Director.

Sentiment

Score: 7

Explanation: The director's increased beneficial ownership through various forms of Deferred Stock Unit acquisition, including dividend reinvestment and in lieu of cash fees, signals a positive alignment of interests and confidence in the company's long-term prospects.

Positives

• Director Matthew J. Shattock increased his beneficial ownership in Clorox by acquiring 2,357.7045 Deferred Stock Units (DSUs) across three transactions.
• The acquisition of DSUs, particularly through dividend reinvestment and in lieu of cash fees, demonstrates the director's continued confidence in the company's long-term prospects and aligns his interests with those of shareholders.
• The DSUs will be settled entirely in Clorox common stock upon the director's retirement or termination, reinforcing a long-term commitment.

Future Outlook

The filing indicates that the Deferred Stock Units will be settled 100% in Clorox stock in connection with the reporting person's retirement or other termination of service as a Director.

Industry Context

Insider transactions, such as the acquisition of deferred stock units by a director, are common occurrences in publicly traded companies. These transactions often reflect the company's compensation structure for its board members, aiming to align their interests with long-term shareholder value. This particular filing indicates a routine accumulation of equity by a director, which is generally viewed as a positive signal of confidence in the company's future.

Comparison to Industry Standards

• The use of Deferred Stock Units (DSUs) as part of director compensation, including annual awards and dividend reinvestment, is a standard practice across many industries, including the consumer goods sector where Clorox operates.
• This approach is designed to foster long-term alignment between director incentives and shareholder returns. No specific comparable companies or projects are detailed in this filing.

Corporate Governance

Related Party Transactions

• The acquisition of Deferred Stock Units by Matthew J. Shattock, a Director of The Clorox Company, constitutes a related party transaction as it involves a company insider and the issuer.

Stakeholder Impact

• Shareholders: The increase in a director's beneficial ownership can be interpreted as a positive signal of management confidence, potentially reassuring shareholders about the company's future performance.

Next Steps

• The Deferred Stock Units will be settled 100% in Clorox common stock upon Matthew J. Shattock's retirement or other termination of service as a Director.

Key Dates

Keywords

Clorox, CLX, Form 4, Insider Transaction, Deferred Stock Units, Director Compensation, Stock Incentive Plan, Beneficial Ownership, Dividend Reinvestment, Corporate Governance