Form 4: Elanco Executive Acquires Deferred Stock Units

Rajeev A. Modi, an Executive Vice President at Elanco Animal Health, acquired deferred stock units representing the right to receive common stock or cash.

Summary

• Rajeev A. Modi, an Executive Vice President at Elanco Animal Health, acquired 114.8109 deferred stock units on December 27, 2024.
• Each deferred stock unit represents the right to receive one share of Elanco common stock or the cash equivalent.
• These deferred stock units will settle in cash or shares of common stock following termination of employment or during a specified future year, as per the Executive Deferral and Stock Match Plan.
• The price of the underlying common stock at the time of the transaction was $12.06.
• Following the transaction, Mr. Modi beneficially owns 2,494.8642 shares of common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to executive compensation, which is generally neutral to positive. It indicates alignment of executive interests with the company's performance.

Future Outlook

The deferred stock units will settle in cash or shares of common stock following termination of employment or during a specified future year.

Industry Context

This is a routine filing related to executive compensation and is common practice for publicly traded companies.

Comparison to Industry Standards

• Stock-based compensation, including deferred stock units, is a common practice among publicly traded companies to align executive interests with shareholder value.
• Many companies in the pharmaceutical and animal health sectors use similar compensation structures.
• The specific terms of the deferral and vesting are typical for executive compensation plans.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns executive interests with the company's performance.

Key Dates

Keywords

Elanco, Deferred Stock Units, Executive Compensation, Stock Ownership, Rajeev A. Modi, SEC Form 4