Form 4: Clorox Director Stephanie Plaines Increases Equity Stake Through Deferred Stock Units

Clorox Director Stephanie Plaines increased her beneficial ownership of the company's stock through the acquisition of deferred stock units via dividend reinvestment and in lieu of director's fees.

Summary

• Stephanie Plaines, a Director of The Clorox Co. (CLX), reported changes in her beneficial ownership of the company's securities.
• On May 9, 2025, she acquired 44.2108 Deferred Stock Units through dividend reinvestment, pursuant to the Independent Directors' Deferred Compensation Plan.
• On June 30, 2025, an additional 218.6225 Deferred Stock Units were received in lieu of quarterly director's fees.
• Following these transactions, the total beneficial ownership of Deferred Stock Units by Stephanie Plaines stands at 5,146.3146.
• These Deferred Stock Units will be settled 100% in Clorox common stock upon the reporting person's retirement or other termination of service as a Director.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as a director increasing their equity stake, even through routine compensation, generally signals confidence and aligns interests with shareholders.

Positives

• Increased alignment of a director's interests with shareholders through the acquisition of additional equity.
• The use of deferred stock units in lieu of cash fees demonstrates confidence in the company's long-term value by the director.

Future Outlook

Deferred Stock Units will be settled 100% in Clorox common stock upon the reporting person's retirement or other termination of service as a Director.

Industry Context

This Form 4 filing reflects standard corporate governance practices where directors receive equity-based compensation, often through deferred stock units, to align their long-term interests with those of shareholders. Such compensation structures are common across various industries for publicly traded companies.

Comparison to Industry Standards

• The acquisition of deferred stock units by a director, particularly in lieu of cash fees and through dividend reinvestment, is a common practice in corporate governance across major U.S. corporations.
• This method aligns director incentives with long-term shareholder value, similar to practices observed at peer consumer goods companies like Procter & Gamble (PG) or Kimberly-Clark (KMB), which also utilize equity-based compensation for their board members.

Stakeholder Impact

• Shareholders: Increased alignment of director's interests with shareholder value due to increased equity ownership.

Next Steps

• Settlement of Deferred Stock Units in Clorox common stock upon the reporting person's retirement or termination of service as a Director.

Key Dates

Recommendation

Keywords

Clorox, CLX, Form 4, insider transaction, beneficial ownership, deferred stock units, director compensation, equity compensation