Form 4: Fiserv Director Henrique De Castro Reports Acquisition of Deferred Compensation Notional Units

Director Henrique De Castro reports acquisition of 219 deferred compensation notional units in Fiserv, Inc. under the Non-Employee Director Deferred Compensation Plan.

Summary

• Henrique De Castro, a director at Fiserv Inc., reported the acquisition of 219 deferred compensation notional units on June 30, 2024.
• These units were allocated under the Fiserv, Inc. Non-Employee Director Deferred Compensation Plan.
• The units represent deferred director fees, where cash payments are exchanged for notional units.
• The value of the deferred compensation is $32,500.
• The number of units was calculated based on Fiserv's closing stock price of $149.04 on June 28, 2024.
• Following the cessation of service, each unit will be settled in one share of Fiserv common stock.
• After the transaction, De Castro directly owns 4,180 derivative securities.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating stable corporate governance practices. It is neither exceptionally positive nor negative.

Positives

• The acquisition of deferred compensation units aligns the director's interests with the long-term performance of Fiserv.
• The Non-Employee Director Deferred Compensation Plan allows directors to defer fees in exchange for notional units, potentially offering tax advantages.

Future Outlook

Following cessation of the reporting person's service to the company, each notional unit will be settled in shares of Fiserv common stock on a one-for-one basis.

Industry Context

Deferred compensation plans are a common practice for compensating non-employee directors, aligning their interests with the company's long-term performance.

Comparison to Industry Standards

• Deferred compensation plans for directors are a fairly standard practice among publicly traded companies, including Fiserv's peers in the financial technology sector.
• Companies like Global Payments Inc. and Fidelity National Information Services (FIS) also utilize similar deferred compensation mechanisms for their board members.
• The specific terms and conditions, such as the valuation method and settlement terms, can vary but the underlying principle of aligning director compensation with shareholder value remains consistent.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director compensation with the company's long-term performance.

Key Dates