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 convertible to common stock, according to a Form 4 filing with the SEC.

Summary

• On March 22, 2024, Rajeev A. Modi, an Executive Vice President at Elanco Animal Health Inc., acquired deferred stock units.
• These deferred stock units represent the right to receive one share of Elanco's common stock or the cash equivalent.
• Mr. Modi acquired 87.5234 deferred stock units at a price of $15.82.
• Following the transaction, Mr. Modi directly owns 521.8328 shares of Elanco common stock.
• The deferred stock units will settle in cash or shares of Elanco common stock following termination of employment or during a specified future year, as per the Executive Deferral and Stock Match Plan.

Sentiment

Score: 5

Explanation: This is a routine SEC filing related to executive compensation. It doesn't indicate any significant positive or negative sentiment.

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, as per the Executive Deferral and Stock Match Plan.

Industry Context

Executive compensation through stock and deferred stock units is a common practice in publicly traded companies like Elanco Animal Health to align management's interests with those of the shareholders.

Comparison to Industry Standards

• Stock-based compensation is a standard practice among publicly traded animal health companies, such as Zoetis and Merck Animal Health, to incentivize executives.
• Deferred stock units are often used as a retention tool, with vesting schedules tied to continued employment or performance milestones, similar to practices observed at other pharmaceutical and biotech firms.

Stakeholder Impact

• The acquisition of deferred stock units by an executive aligns their interests with shareholders, potentially encouraging decisions that increase shareholder value.

Key Dates