Form 4: Clorox EVP Defers Stock Grant, Adjusts Holdings

Clorox EVP Chris T. Hyder reported the deferral of 6,812 shares from a performance unit grant and tax-related dispositions, resulting in a net beneficial ownership of 35,133 shares.

Summary

• Chris T. Hyder, EVP-Group President Health & Hygiene at The Clorox Company, reported changes in his beneficial ownership of common stock.
• On October 3, 2025, Mr. Hyder acquired 6,812 shares of common stock at a price of $122.25 per share, stemming from the settlement of a 2022 Performance Unit Grant that vested on the same date.
• Mr. Hyder elected to defer the receipt of these 6,812 shares pursuant to the 2005 Stock Incentive Plan.
• Concurrently, 162 shares of common stock were disposed of at $122.25 per share to satisfy tax obligations related to the vesting of performance stock units.
• An additional 948 shares of common stock were disposed of at $122.25 per share to satisfy tax obligations related to the vesting of restricted stock.
• Following these transactions, Mr. Hyder's direct beneficial ownership stands at 35,133 shares of common stock.
• The reported beneficial ownership also includes 722 shares acquired through a dividend reinvestment feature of the Company's Stock Incentive Plan.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive due to the executive's decision to defer a significant portion of vested shares, indicating a long-term commitment. The tax-related dispositions are routine and do not negatively impact sentiment significantly.

Positives

• The deferral of 6,812 shares from a vested performance unit grant indicates a long-term commitment by a key executive to The Clorox Company's future performance.
• The acquisition of 722 shares through a dividend reinvestment feature demonstrates continued investment in the company's stock.

Negatives

• A total of 1,110 shares (162 + 948) were disposed of to cover tax obligations, which is a standard practice but reduces the executive's immediate direct holdings.

Future Outlook

The deferral of vested performance units by a key executive suggests a continued alignment of management's interests with long-term shareholder value, as the shares are not immediately liquidated.

Industry Context

This Form 4 filing reflects routine executive compensation and ownership adjustments, which are common across publicly traded companies in the consumer goods sector. It does not provide specific insights into broader industry trends or competitive positioning.

Stakeholder Impact

• Shareholders: The deferral of vested shares by a key executive may be viewed positively, signaling confidence in the company's long-term prospects and aligning management interests with shareholder value.
• Employees: These transactions are part of standard executive compensation practices and do not directly impact the broader employee base.

Next Steps

• Chris T. Hyder will continue to beneficially own 35,133 shares of Clorox common stock, with the deferred shares held under the 2005 Stock Incentive Plan.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions related to executive compensation, specifically the vesting and deferral of equity awards and associated tax withholdings. Such transactions are generally pre-scheduled and do not typically signal a change in the company's fundamental outlook or strategic direction. While the deferral of shares by a key executive can be seen as a positive sign of long-term commitment, the overall impact on the company's valuation or future performance is neutral. Therefore, it does not provide a strong basis for a 'buy' or 'sell' recommendation, leading to a 'hold' stance for seasoned investors.

Keywords

CLX, Clorox, insider transaction, Form 4, stock ownership, executive compensation, performance units, restricted stock, Chris T. Hyder