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

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

Summary

• Matthew Shattock, a director of Clorox, filed a Form 4 detailing changes in beneficial ownership.
• On November 7, 2024, he acquired 105.0423 deferred stock units through dividend reinvestment.
• On December 31, 2024, he received an annual award of 1,000.7162 deferred stock units pursuant to the 2005 Stock Incentive Plan.
• Also on December 31, 2024, he received 315.5594 deferred stock units in lieu of quarterly director's fees.
• All deferred stock units will be settled in Clorox stock upon his retirement or termination of service as a director.
• Following these transactions, Shattock's total holdings increased to 15,435.8616 deferred stock units.

Sentiment

Score: 6

Explanation: The sentiment is neutral as it reflects routine transactions related to director compensation and ownership.

Positives

• The director's increased holdings demonstrate confidence in the company's future.
• The acquisition of stock units through dividend reinvestment shows a long-term investment strategy.
• The annual award of deferred stock units 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

Form 4 filings are a routine part of corporate governance, providing transparency into the transactions of company insiders.

Comparison to Industry Standards

• Director compensation packages often include deferred stock units to align executive interests with long-term shareholder value, similar to practices at companies like Procter & Gamble (PG) and Unilever (UL).
• The Clorox 2005 Stock Incentive Plan is a common mechanism for granting equity-based compensation, comparable to plans used by other large consumer goods companies.

Stakeholder Impact

• The transactions have a minor positive impact on shareholders by aligning director interests with long-term company performance.

Key Dates