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 May 3, 2024.

Summary

• On May 3, 2024, Rajeev A. Modi, an Executive Vice President at Elanco Animal Health Inc., acquired deferred stock units.
• The transaction involved 102.337 deferred stock units at a price of $13.53.
• Following the transaction, Modi directly owns 820.0762 deferred stock units.
• These deferred stock units represent the right to receive one share of Elanco common stock or the cash equivalent upon termination of employment or during a specified future year, as per the Executive Deferral and Stock Match Plan.

Sentiment

Score: 7

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

Positives

• The acquisition of deferred stock units aligns the executive's interests with the company's long-term performance.

Future Outlook

The deferred stock units will settle in cash or shares of Elanco 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 filing is a routine disclosure related to executive compensation and is common in the animal health industry to align management incentives with shareholder value.

Comparison to Industry Standards

• Executive compensation packages often include deferred stock units to incentivize long-term performance, a common practice among publicly traded companies like Zoetis and IDEXX Laboratories.
• The vesting and settlement terms described are typical for such arrangements.

Stakeholder Impact

• The acquisition of deferred stock units by an executive can positively influence shareholder confidence by aligning management's interests with the company's long-term success.

Key Dates