Form 4: Elanco Director Defers Compensation into Stock Units

Director Kapila K. Anand has elected to defer her director cash retainer fees into Elanco Animal Health Inc. stock units.

Summary

• Director Kapila K. Anand has elected to defer her cash retainer fees into Elanco Animal Health Inc. stock units under the company's Directors' Deferral Plan.
• These deferred fees were credited as Deferred Stock Units, with each unit being economically equivalent to one share of Elanco common stock.
• A total of 584.1121 Deferred Stock Units were issued on June 30, 2026.
• The issuance price was based on the closing price of Elanco common stock on the grant date, which was $24.61 per share.
• These Deferred Stock Units will be settled in stock upon Ms. Anand's separation from the company's Board of Directors.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, as it represents a standard compensation deferral by a director rather than a significant strategic or financial event.

Positives

• Director alignment with company performance through stock ownership.
• Demonstrates confidence in the company's future value by deferring cash compensation into stock.
• The deferral plan allows directors to accumulate equity over time.

Risks

• The value of the deferred stock units is subject to the market fluctuations of Elanco's common stock price.
• Potential for dilution if a significant number of directors defer compensation into stock.

Future Outlook

The Deferred Stock Units will be settled in stock upon the reporting person's separation of service from the Company's Board of Directors.

Industry Context

StockSavvy.ai notes that the deferral of director compensation into company stock is a common practice in the animal health industry, signaling a commitment to long-term value creation and alignment with shareholder interests.

Related Party Transactions

• Director Kapila K. Anand elected to defer her director cash retainer fees into Elanco Deferred Stock Units.

Stakeholder Impact

• Shareholders: Increased alignment of director interests with shareholders through stock ownership.
• Directors: Potential for increased wealth if the stock price appreciates, but also exposure to stock price volatility.

Next Steps

• Settlement of Deferred Stock Units in stock upon reporting person's separation from the Board of Directors.

Key Dates

Keywords

Form 4, SEC Filing, Insider Trading, Stock Options, Deferred Compensation, Director Compensation, Elanco Animal Health, ELAN, Equity