Form 4: Elanco CEO receives 131 DSUs under deferral plan

Elanco CEO Jeffrey N. Simmons acquired 131.3058 deferred stock units at $21.09 and now directly holds 18,355.9214 DSUs under the company’s Executive Deferral and Stock Match Plan.

Summary

• On 2025-11-14, President, CEO and Director Jeffrey N. Simmons acquired 131.3058 deferred stock units (DSUs) of Elanco Animal Health Inc. (NYSE: ELAN).
• The transaction code was A (grant/award) and the recorded price per DSU was $21.09.
• Each DSU represents the right to receive one share of common stock or the cash equivalent upon settlement.
• Following the transaction, Simmons directly beneficially owns 18,355.9214 DSUs.
• Per the Executive Deferral and Stock Match Plan, DSUs settle in cash or shares following termination of employment or during a specified future year.

Sentiment

Score: 6

Explanation: Routine plan-based insider equity award that modestly enhances alignment; no new performance or strategic information.

Positives

• Increases alignment between the CEO and shareholders through additional deferred equity (131.3058 DSUs).
• Settlement flexibility (cash or shares) provides administrative and liquidity options under the plan.

Negatives

• No operational or financial performance information is provided in this insider transaction report.
• Potential, albeit minimal, future dilution if DSUs settle in shares.

Future Outlook

No forward-looking financial guidance is provided. DSUs will settle in cash or shares following termination of employment or during a specified future year in accordance with the Executive Deferral and Stock Match Plan.

Industry Context

Routine insider equity accruals via DSUs are common in animal health and broader biopharma as part of long-term incentive and deferral programs, aligning executives with shareholders while managing tax and liquidity timing.

Comparison to Industry Standards

• Comparable companies such as Zoetis (ZTS) and IDEXX (IDXX) use DSUs and deferred equity as standard components of executive compensation, making this award consistent with sector practices.
• The modest size and plan-based nature of the transaction align with routine deferral/match elections rather than outsized, event-driven grants seen in special retention or change-in-control packages.

Related Party Transactions

• Grant/acquisition of 131.3058 DSUs by the President & CEO under the Executive Deferral and Stock Match Plan, which may settle in cash or shares.

Stakeholder Impact

• Minimal potential dilution if settled in shares given small size of the award.
• Enhanced alignment of executive incentives with shareholder interests through deferred equity.

Next Steps

• No further actions disclosed; DSUs will settle per plan upon termination or during a specified future year.

Key Dates

Keywords

Elanco, ELAN, Jeffrey N. Simmons, Deferred Stock Units, Insider transaction, Form 4, Executive Deferral and Stock Match Plan, Equity compensation, Animal health