Form 4: Clorox EVP Acquires 7,208 Shares via RSU Grant

Clorox EVP Nina Barton acquired 7,208 shares of common stock through Restricted Stock Units, vesting over four years, as part of a Rule 10b5-1 plan.

Summary

• Nina Barton, EVP-Group President-Care & Connected Commerce at The Clorox Company (CLX), acquired 7,208 shares of common stock.
• The acquisition was made through Restricted Stock Units (RSUs) at a price of $124.85 per share.
• The transaction date for this acquisition was September 16, 2025.
• Following this transaction, Nina Barton beneficially owns 28,496 shares of Clorox common stock.
• The RSUs will vest in four equal annual installments, starting on October 5, 2026, and continuing on October 5, 2027, 2028, and 2029.
• The transaction was made pursuant to a contract, instruction, or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Sentiment

Score: 7

Explanation: The acquisition of shares by a key executive, even through an RSU grant, is generally a positive signal as it aligns management's interests with shareholders and indicates continued commitment to the company's long-term success. The Rule 10b5-1 plan also reflects good governance.

Positives

• The acquisition of shares by a key executive demonstrates continued alignment of management interests with shareholder value.
• The long-term vesting schedule over four years encourages sustained executive focus on the company's performance and long-term growth.
• The transaction was executed under a Rule 10b5-1 plan, indicating a pre-arranged and systematic approach to executive compensation and share acquisition.

Negatives

• The acquisition is through Restricted Stock Units, which are compensation grants rather than direct open-market purchases, meaning the executive did not use personal capital for the acquisition at the time of grant.

Future Outlook

The vesting schedule for the Restricted Stock Units extends through October 2029, indicating a long-term incentive structure for the executive and a commitment to future performance.

Management Comments

• The transaction was made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Industry Context

Executive compensation through Restricted Stock Units with multi-year vesting is a common practice across industries, designed to align executive incentives with long-term shareholder value creation and retention.

Comparison to Industry Standards

• The grant of Restricted Stock Units (RSUs) with a multi-year vesting schedule is a standard component of executive compensation packages in large public companies, comparable to practices at peers like Procter & Gamble (PG) or Kimberly-Clark (KMB).
• The use of a Rule 10b5-1 plan for such transactions is also a common corporate governance practice, providing a structured and compliant method for insiders to acquire or dispose of company stock.

Corporate Governance

Stakeholder Impact

• Shareholders: Positive impact due to increased alignment of executive interests with long-term shareholder value through equity ownership and multi-year vesting.
• Employees: No direct impact mentioned, but executive compensation practices can influence overall company culture and morale.
• Management: The executive receives long-term incentive compensation, tying their financial success to the company's performance.

Next Steps

• The Restricted Stock Units will vest in four equal installments on October 5, 2026, 2027, 2028, and 2029.

Key Dates

Keywords

Clorox, CLX, Nina Barton, EVP, Restricted Stock Units, RSU, Insider Transaction, Form 4, Executive Compensation, Stock Acquisition, Rule 10b5-1