Form 4: Elevance Health Director Antonio Neri Reports Acquisition of Deferred Stock Units

Director Antonio Neri reported the acquisition of deferred stock units in Elevance Health, Inc.

Summary

• On May 15, 2024, Antonio F Neri, a director of Elevance Health, Inc. (ELV), acquired 388 deferred stock units.
• These units were accrued under the company's Board of Directors Compensation Program.
• The deferred stock units will be payable in Elevance Health common stock upon the earlier of (a) five years from the grant date or (b) the date Neri ceases to be a board member, unless a later date is designated.
• Following the transaction, Neri beneficially owns 4,324 shares of Elevance Health common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard director compensation practices, aligning interests with shareholders.

Positives

• The acquisition of deferred stock units aligns the director's interests with the long-term performance of the company.
• The compensation structure incentivizes continued service on the board.

Future Outlook

The deferred stock units will convert to common stock in the future, either five years from the grant date or upon Neri's departure from the board, unless a later date is designated.

Industry Context

This filing is a routine disclosure related to director compensation, which is a common practice in publicly traded companies to align the interests of board members with those of shareholders.

Comparison to Industry Standards

• Director compensation packages often include deferred stock units or similar equity-based awards to incentivize long-term value creation.
• Companies like UnitedHealth Group (UNH) and Cigna (CI) also utilize equity-based compensation for their directors.
• The specific terms of these awards, such as vesting schedules and payout conditions, can vary widely based on company policy and industry benchmarks.

Stakeholder Impact

• Shareholders: The transaction reflects standard compensation practices and aligns director interests with long-term company performance.
• Employees: No direct impact.
• Customers: No direct impact.
• Suppliers: No direct impact.
• Creditors: No direct impact.

Key Dates