Form 4: Cooper Companies Executive Acquires Stock Units Following Performance Period

Daniel G. McBride, EVP & Chief Operating Officer of Cooper Companies, acquired performance and restricted stock units on December 10, 2024, which will vest into common stock in the future.

Summary

• Daniel G. McBride, the EVP & Chief Operating Officer of Cooper Companies, acquired 22,777 performance stock units and 16,653 restricted stock units on December 10, 2024.
• 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, subject to continued service.
• The restricted stock units vest 25% per year over four years, with the first vesting date on January 8, 2025.
• Both types of units will convert to shares of common stock upon vesting.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally positive as it aligns executive interests with company performance. There are no negative implications.

Positives

• The acquisition of stock units indicates confidence in the company's future performance by a key executive.
• The vesting of performance stock units is tied to a three-year performance period, aligning executive compensation with long-term company success.

Risks

• The vesting of the stock units is contingent on continued service, which could be a risk if the executive were to leave the company before the vesting dates.

Future Outlook

The performance stock units will vest on February 1, 2025, and the restricted stock units will vest over four years starting January 8, 2025, both subject to continued service.

Industry Context

This type of stock unit grant is a common practice in corporate compensation, aligning executive interests with shareholder value and long-term company performance.

Comparison to Industry Standards

• Equity-based compensation, such as performance and restricted stock units, is a standard practice among publicly traded companies like Cooper Companies.
• Companies such as Alcon, Bausch Health, and Johnson & Johnson also utilize similar compensation structures to incentivize their executives.
• The vesting schedules of these units are also typical, with performance-based units often vesting after a performance period and restricted units vesting over several years.

Stakeholder Impact

• Shareholders may view this as a positive sign, as it aligns executive compensation with company performance.
• Employees may see this as a standard practice for executive compensation.

Next Steps

• The performance stock units will vest on February 1, 2025, if the executive remains employed.
• The restricted stock units will continue to vest annually starting January 8, 2025, if the executive remains employed.

Key Dates

Keywords

stock units, performance stock units, restricted stock units, executive compensation, insider trading, COO, Cooper Companies, vesting