Form 4: Elanco Executive Rajeev A. Modi Reports Acquisition of Deferred Stock Units

Elanco Animal Health Inc. executive Rajeev A. Modi reports the acquisition of deferred stock units convertible to common stock following termination of employment or during a specified future year.

Summary

• On March 7, 2025, Rajeev A. Modi, an Executive Vice President at Elanco Animal Health Inc., reported the acquisition of 2,467.2011 deferred stock units.
• These units are convertible to common stock or their cash equivalent.
• The deferred stock units will settle in cash or shares of Elanco common stock following termination of employment or during a specified future year, according to the Executive Deferral and Stock Match Plan.
• Following the transaction, Modi directly owns 5,443.6641 shares.

Sentiment

Score: 5

Explanation: The document is a routine regulatory filing related to executive compensation, and does not contain information that would significantly impact investor sentiment positively or negatively.

Positives

• The acquisition of deferred stock units aligns the executive's interests with the long-term performance of the company.

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, according to the Executive Deferral and Stock Match Plan.

Industry Context

Executive compensation through stock options and deferred stock units is a common practice in publicly traded companies to incentivize performance and align management's interests with shareholders.

Comparison to Industry Standards

• Stock-based compensation is a standard practice among publicly listed companies, including Elanco's competitors in the animal health industry such as Zoetis and Merck Animal Health.
• The specific terms of the Executive Deferral and Stock Match Plan would need to be compared to similar plans at peer companies to assess its competitiveness and alignment with industry norms.

Stakeholder Impact

• The transaction has a minor impact on shareholders as it reflects executive compensation and alignment with company performance.

Key Dates