Form 4: Elanco Director Paul Herendeen Receives Equity Award

Elanco Animal Health Inc. Director Paul Herendeen was granted 10,314 deferred stock units as an annual equity award.

Summary

• Paul Herendeen, a Director of Elanco Animal Health Inc. (ELAN), acquired 10,314 shares of Common Stock.
• The transaction occurred on November 28, 2025.
• The acquisition was a grant of deferred stock units, part of an annual equity award for non-employee members of the Issuer's Board of Directors.
• The acquisition price per share was $0, indicating a grant rather than a purchase.
• Following this transaction, Herendeen beneficially owns 84,813 shares of Common Stock.

Sentiment

Score: 6

Explanation: Slightly positive as it indicates routine director compensation aligning interests with shareholders, but not a significant market-moving event.

Positives

• The grant of deferred stock units aligns the interests of Director Paul Herendeen with those of shareholders.
• Equity compensation for non-employee directors is a common practice to incentivize long-term performance and commitment.

Future Outlook

NA

Industry Context

Equity compensation, such as deferred stock units, is a standard practice across industries for non-employee directors. It serves to align their interests with long-term shareholder value creation and is a common component of corporate governance best practices.

Comparison to Industry Standards

• The grant of deferred stock units to a non-employee director is consistent with compensation practices observed in many publicly traded companies, particularly within the pharmaceutical and animal health sectors.
• Companies like Zoetis Inc. (ZTS) and IDEXX Laboratories, Inc. (IDXX) also utilize equity-based awards to compensate their non-executive board members, aiming to foster long-term commitment and align director incentives with company performance and shareholder returns.

Corporate Governance

Stakeholder Impact

• Shareholders: The equity award aligns the director's financial interests with shareholder value creation, potentially leading to more shareholder-centric decision-making.
• Employees: No direct impact on employees is indicated by this filing.
• Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated by this filing.

Key Dates

Keywords

Elanco Animal Health, ELAN, Paul Herendeen, Director, Insider Transaction, Equity Award, Deferred Stock Units, Form 4, SEC Filing, Board Compensation