Form 4: Fortive CEO James Lico Acquires Over 54,000 Shares Following PSU Vesting

Fortive Corp's President and CEO, James A. Lico, acquired 54,636 shares of common stock on June 27, 2025, following the achievement of performance criteria for previously awarded Performance Stock Units.

Summary

• James A. Lico, President and CEO of Fortive Corp (FTV), acquired 54,636 shares of common stock.
• This acquisition resulted from the vesting of Performance Stock Units (PSUs) awarded on February 27, 2023.
• The Compensation Committee determined on June 27, 2025, that the performance criteria for these PSUs were achieved.
• The shares vest on the third anniversary of the original grant date (February 27, 2026) and are subject to a one-year holding period thereafter.
• Following this transaction, Mr. Lico directly beneficially owns 483,221 shares of common stock.
• Additionally, Mr. Lico indirectly holds 19,947 shares through a 401(k) plan as of May 31, 2025.
• The transaction was made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 7

Explanation: The filing indicates the achievement of performance criteria for executive compensation, leading to a significant stock acquisition by the CEO. This suggests positive internal performance metrics were met, which is generally favorable. The transaction is part of a pre-arranged plan, indicating stability rather than opportunistic trading.

Positives

• The achievement of performance criteria for the PSUs indicates that the company met specific goals set by the Compensation Committee, which is generally a positive sign for company performance.
• The acquisition of shares by the CEO increases his direct ownership stake, aligning his interests further with shareholders.

Future Outlook

The shares acquired from the Performance Stock Units are subject to a vesting period until February 27, 2026, followed by a one-year holding period until February 27, 2027.

Industry Context

This Form 4 filing details an executive's compensation-related stock acquisition, a routine disclosure in the corporate governance landscape. Such transactions are common across industries as a mechanism for executive incentive and retention, aligning management interests with shareholder value through performance-based equity awards.

Comparison to Industry Standards

• The use of Performance Stock Units (PSUs) with vesting schedules and holding periods is a standard practice in executive compensation across various industries, including industrial technology and manufacturing, where Fortive operates.
• This structure is designed to incentivize long-term performance and align executive interests with shareholder returns.
• While specific comparable companies or projects are not mentioned in this filing, the general compensation structure aligns with best practices observed in companies like Danaher Corporation (FTV's former parent), Roper Technologies, or other diversified industrial companies that utilize performance-based equity awards for their top executives.

Stakeholder Impact

• Shareholders: The vesting of PSUs based on performance criteria suggests the company met certain goals, which could be positive for shareholder value. Increased insider ownership also aligns management interests with shareholders.
• Employees: No direct impact mentioned, but successful performance leading to executive compensation could reflect positively on overall company performance.

Next Steps

• The acquired shares will vest on February 27, 2026.
• A one-year holding period for the vested shares will commence after vesting, ending on February 27, 2027.

Key Dates

Recommendation

Keywords

Fortive Corp, FTV, James A Lico, SEC Form 4, Insider Trading, Stock Acquisition, Performance Stock Units, PSUs, Executive Compensation, Share Ownership, Rule 10b5-1