Form 4: Elanco Executive Rajeev Modi Acquires Additional Deferred Stock Units

Elanco Animal Health Inc. Executive Vice President Rajeev A. Modi acquired 94.9409 deferred stock units, increasing his beneficial ownership to 6,555.6312 units.

Summary

• Rajeev A. Modi, Executive Vice President U.S. Pet Health and Global Digital Transformation at Elanco Animal Health Inc., acquired 94.9409 Deferred Stock Units (DSUs).
• The transaction occurred on July 11, 2025.
• Each deferred stock unit represents the right to receive one share of Company common stock or the cash equivalent.
• Deferred stock units are set to settle in cash or shares of Company common stock following termination of employment or during a specified future year, in accordance with the Executive Deferral and Stock Match Plan.
• Following this acquisition, Mr. Modi beneficially owns a total of 6,555.6312 Deferred Stock Units.
• The derivative security (Deferred Stock Unit) was valued at $14.9.

Sentiment

Score: 7

Explanation: The filing reports a routine acquisition of deferred stock units by an executive as part of a compensation plan, which is generally a neutral to slightly positive event indicating continued executive alignment with shareholder interests.

Positives

• The acquisition of additional deferred stock units increases the alignment of the executive's interests with those of shareholders through greater equity ownership.
• Continued participation in the company's long-term incentive plans indicates a commitment to the company's future performance.

Future Outlook

The deferred stock units are structured to settle in cash or shares of Company common stock following termination of employment or during a specified future year, in accordance with the Executive Deferral and Stock Match Plan, indicating a long-term compensation component.

Industry Context

This filing represents a routine insider transaction, common across all industries, where executives receive equity-based compensation as part of their long-term incentive plans. Such transactions are standard practice for aligning executive interests with company performance and shareholder value creation.

Comparison to Industry Standards

• The use of deferred stock units as a component of executive compensation is a widely adopted practice among publicly traded companies, including those in the animal health sector.
• Companies such as Zoetis Inc. (ZTS) and IDEXX Laboratories, Inc. (IDXX) also commonly utilize similar equity-based compensation structures to incentivize their executives and foster alignment with shareholder interests.
• The specific number of units acquired and the total beneficial ownership are particular to Elanco's compensation framework and Mr. Modi's executive role, consistent with tailored executive incentive programs across the industry.

Related Party Transactions

• The acquisition of deferred stock units by an executive is a common form of related-party transaction within the scope of executive compensation plans, designed to align management incentives with company performance.

Stakeholder Impact

• Shareholders: The transaction increases the alignment of executive interests with shareholder value through additional equity ownership.

Next Steps

• The deferred stock units will settle in cash or shares of Company common stock upon termination of employment or during a specified future year, as per the Executive Deferral and Stock Match Plan.

Key Dates

Keywords

Elanco Animal Health Inc, ELAN, Rajeev A. Modi, Deferred Stock Units, DSU, Insider Transaction, Executive Compensation, SEC Form 4, Equity Acquisition, Stock Ownership