Form 4: Fiserv Director Charlotte Yarkoni Reports Changes in Beneficial Ownership

Director Charlotte Yarkoni reports acquisition of deferred compensation notional units convertible to Fiserv common stock.

Summary

• Charlotte Yarkoni, a director at Fiserv Inc., filed a Form 4 on July 2, 2024, reporting changes in beneficial ownership.
• On June 30, 2024, Yarkoni acquired 219 deferred compensation notional units under the Fiserv, Inc. Non-Employee Director Deferred Compensation Plan.
• These units represent deferred director fees and are convertible to Fiserv common stock on a one-for-one basis following cessation of service.
• The units were credited in respect of $32,500 of deferred compensation, with the number of units calculated based on a price of $149.04 per share.
• Following the transaction, Yarkoni directly owns 423 derivative securities.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a neutral to slightly positive sentiment due to alignment of interests.

Positives

• The acquisition of deferred compensation units aligns the director's interests with the long-term performance of Fiserv.
• The deferred compensation plan allows directors to convert fees into company stock, potentially increasing their stake in the company's success.

Future Outlook

The notional units will be settled in shares of Fiserv common stock on a one-for-one basis following cessation of the reporting person's service to the company.

Management Comments

• These deferred compensation notional units were allocated under the Fiserv, Inc. Non-Employee Director Deferred Compensation Plan (the 'Plan'), under which director fees otherwise payable in cash may be deferred in exchange for the allocation of notional units under the Plan.

Industry Context

Director compensation plans are common in publicly traded companies to align the interests of directors with those of shareholders. Deferred compensation plans are a specific type of compensation that allows directors to defer income and potentially reduce their current tax burden while increasing their stake in the company.

Comparison to Industry Standards

• Many companies, including peers like Global Payments Inc. (GPN) and Automatic Data Processing (ADP), offer deferred compensation plans to their directors.
• The specifics of these plans, such as the deferral rate and the conversion mechanism, can vary.
• The conversion of deferred compensation into stock units is a common practice to further align director and shareholder interests.

Stakeholder Impact

• Shareholders may view the director's participation in the deferred compensation plan as a positive sign, indicating alignment of interests.
• The plan does not have a direct impact on employees, customers, suppliers, or creditors.

Key Dates