Form 4: Clorox Director Matthew Shattock Reports Acquisition of Deferred Stock Units

Director Matthew Shattock reports acquiring additional deferred stock units in The Clorox Company through dividend reinvestment and in lieu of quarterly director's fees.

Summary

• Matthew J Shattock, a director of The Clorox Company, filed a Form 4 detailing changes in beneficial ownership.
• The report indicates the acquisition of deferred stock units (DSUs) through dividend reinvestment on August 30, 2024, amounting to 104.7699 units.
• Shattock also acquired 314.5909 DSUs on September 30, 2024, in lieu of quarterly director's fees.
• These DSUs will be settled in Clorox stock upon Shattock's retirement or termination of service as a director.
• Following these transactions, Shattock beneficially owns 14,014.5436 deferred stock units.
• The reporting person has direct ownership of the deferred stock units.

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 director's acquisition of stock units demonstrates confidence in the company's future.
• The dividend reinvestment plan allows for incremental increases in stock ownership.

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 those of shareholders. This Form 4 filing reflects a common practice of directors receiving deferred stock units as part of their compensation package.

Comparison to Industry Standards

• Stock-based compensation for directors is a common practice across publicly traded companies.
• Companies like Procter & Gamble (PG) and Unilever (UL) also utilize stock options and restricted stock units as part of their director compensation packages.
• The specific amount and vesting schedule of these awards vary based on company size, performance, and industry benchmarks.

Stakeholder Impact

• The acquisition of deferred stock units by a director can positively influence shareholder sentiment by demonstrating confidence in the company's future performance.
• The director's compensation structure aligns their interests with those of the shareholders, encouraging decisions that benefit the company's long-term value.

Key Dates