Form 4: Cooper Companies CEO Acquires Significant Stock and Options Awards

Cooper Companies CEO, Albert G. White III, received a substantial grant of performance stock units and stock options on December 10, 2024.

Summary

• On December 10, 2024, Albert G. White III, the President and CEO of Cooper Companies, was granted 84,264 performance stock units and 207,832 stock options.
• The performance stock units were earned for the three-year performance period ending October 31, 2024, and will vest and convert to common stock on February 1, 2025, contingent on continued service.
• The stock options have an exercise price of $99.08 and vest 25% per year over four years, starting from the grant date, and expire on December 10, 2034.
• Both the performance stock units and stock options were directly awarded to Mr. White.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which are generally viewed positively as they align management's interests with shareholders. There are no indications of negative sentiment.

Positives

• The grant of performance stock units and stock options aligns the CEO's interests with the long-term performance of the company.
• The vesting schedule of the stock options encourages long-term commitment from the CEO.

Risks

• The vesting of the performance stock units is contingent on continued service, which could be a risk if the CEO were to leave the company before February 1, 2025.
• The value of the stock options is dependent on the future performance of the company's stock price.

Future Outlook

The performance stock units will vest and convert to shares of common stock on February 1, 2025, subject to continued service. The stock options vest over four years, encouraging long-term performance.

Industry Context

This type of equity-based compensation is common for CEOs in publicly traded companies to align their interests with shareholders and incentivize long-term growth.

Comparison to Industry Standards

• Equity-based compensation, including performance stock units and stock options, is a standard practice for executive compensation in publicly traded companies like Cooper Companies.
• Companies such as Alcon and Bausch + Lomb also utilize similar compensation structures to incentivize their executive teams.
• The vesting schedules and performance metrics associated with these awards are typically aligned with industry benchmarks for long-term value creation.

Stakeholder Impact

• Shareholders may view this as a positive sign, as it aligns the CEO's interests with the company's long-term performance.
• Employees may see this as a sign of stability and commitment from the leadership.

Next Steps

• The performance stock units will vest on February 1, 2025, if the CEO remains in service.
• The stock options will continue to vest over the next four years.

Key Dates

Keywords

stock options, performance stock units, executive compensation, insider trading, COO, Albert G. White III, Cooper Companies