Form 4: Clorox Director Spencer C. Fleischer Reports Changes in Beneficial Ownership

Director Spencer C. Fleischer reports acquisition of Clorox deferred stock units through dividend reinvestment and in lieu of director's fees.

Summary

• On September 30, 2024, Director Spencer C. Fleischer acquired 191.8237 deferred stock units in The Clorox Company in lieu of quarterly director's fees.
• Fleischer also acquired 123.3109 deferred stock units on August 30, 2024, through dividend reinvestment.
• These units will be settled in Clorox stock upon the director's retirement or termination of service.
• Following these transactions, Fleischer directly owns 16,316.2347 deferred stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard director compensation practices and continued investment in the company.

Positives

• The acquisition of deferred stock units demonstrates the director's continued investment in the company's future.
• Dividend reinvestment indicates a long-term perspective and confidence in Clorox's performance.

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, which is a common practice in corporate governance.

Comparison to Industry Standards

• Stock-based compensation for directors is a common practice among publicly traded companies, including competitors like Procter & Gamble (PG) and Unilever (UL), to align their interests with shareholders.
• Deferred stock unit plans are frequently used to provide long-term incentives and ensure directors have a vested interest in the company's sustained success, similar to plans offered by Colgate-Palmolive (CL).

Stakeholder Impact

• Shareholders may view the director's acquisition of stock units as a positive sign of alignment with their interests.
• The director's compensation structure could influence employee morale and perception of fairness.

Key Dates