Form 4: Elanco Animal Health Executive Acquires Deferred Stock Units

Rajeev A. Modi, an Executive Vice President at Elanco Animal Health, acquired deferred stock units convertible to common stock, as reported in a recent SEC filing.

Summary

• On April 18, 2025, Rajeev A. Modi, an Executive Vice President at Elanco Animal Health Inc., acquired 166.8184 deferred stock units.
• These deferred stock units represent the right to receive one share of Elanco common stock or the cash equivalent.
• The units will settle in cash or shares of common stock following termination of employment or during a specified future year, according to the Executive Deferral and Stock Match Plan.
• Following the reported transaction, Modi beneficially owns 5,899.4277 shares of Elanco common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard executive compensation practices and aligns management with shareholder interests.

Positives

• The acquisition of deferred stock units aligns the executive's interests with the long-term performance of Elanco Animal Health.
• The Executive Deferral and Stock Match Plan incentivizes executives to remain with the company.

Future Outlook

The deferred stock units will settle in cash or shares of Company common stock following termination of employment or during a specified future year in accordance with Executive Deferral and Stock Match Plan.

Industry Context

Executive compensation through stock and deferred stock units is a common practice in the animal health industry to align management interests with shareholder value.

Comparison to Industry Standards

• Companies like Zoetis and Merck Animal Health also utilize stock-based compensation for their executives.
• The specific terms of Elanco's Executive Deferral and Stock Match Plan would need to be compared to those of its peers to assess its competitiveness.
• Stock ownership guidelines and equity grants are typical components of executive compensation packages in the pharmaceutical and animal health sectors.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning executive interests with company performance.
• The Executive Deferral and Stock Match Plan may positively impact employees by incentivizing long-term commitment.

Key Dates

Keywords

Elanco Animal Health, Rajeev A. Modi, deferred stock units, common stock, SEC Form 4, executive compensation, beneficial ownership