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

Elanco Animal Health's Executive Vice President, Rajeev A. Modi, reports the acquisition of deferred stock units convertible to common stock following termination of employment.

Summary

• Rajeev A. Modi, an Executive Vice President at Elanco Animal Health Inc., filed a Form 4 with the SEC.
• The filing reports the acquisition of deferred stock units on April 19, 2024.
• These deferred stock units represent the right to receive one share of Elanco common stock or the cash equivalent.
• A total of 106.9205 deferred stock units were acquired at a price of $12.95.
• These units will settle in cash or shares of Elanco 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 717.7392 shares of common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a standard executive compensation practice, aligning executive interests with company performance.

Positives

• The acquisition of deferred stock units aligns executive compensation with the long-term performance of Elanco Animal Health.
• The Executive Deferral and Stock Match Plan encourages 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 packages often include deferred stock units to align executive interests with shareholder value and encourage long-term commitment to the company.

Comparison to Industry Standards

• Deferred stock units are a common component of executive compensation packages in publicly traded companies, particularly in the pharmaceutical and animal health industries.
• Companies like Zoetis and Merck Animal Health also utilize similar equity-based compensation plans for their executives.

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