Form 4: Elanco Animal Health Executive Rajeev A. Modi Reports Acquisition of Deferred Stock Units

Rajeev A. Modi, an Executive Vice President at Elanco Animal Health, reported the acquisition of deferred stock units on January 24, 2025.

Summary

• On January 24, 2025, Rajeev A. Modi, an Executive Vice President at Elanco Animal Health Inc., acquired deferred stock units.
• The transaction involved 114.6209 deferred stock units, each representing the right to receive one share of Elanco common stock or the cash equivalent.
• These deferred stock 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 directly owns 2,730.6242 shares.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. It's a neutral event with a slightly positive implication for long-term commitment.

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 encourages long-term commitment from executives.

Future Outlook

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

Industry Context

This Form 4 filing is a routine disclosure related to executive compensation and is common in the animal health industry, reflecting standard practices for aligning executive incentives with shareholder value.

Comparison to Industry Standards

• Executive compensation packages including deferred stock units are common across the pharmaceutical and animal health industries.
• Companies like Zoetis and Merck Animal Health also utilize similar compensation structures to incentivize their executives.
• The specific terms of the Executive Deferral and Stock Match Plan would need to be compared to those offered by peer companies to assess its competitiveness.

Stakeholder Impact

• Shareholders may view the acquisition of deferred stock units positively, as it aligns executive interests with the company's long-term performance.
• Employees may see this as a standard practice for executive compensation.

Key Dates