Form 4: Fortive Corp: CEO James A. Lico Reports Acquisition of Notional Shares Through Executive Deferred Incentive Program

CEO James A. Lico reports acquiring 4,817.276 notional shares of Fortive Corp through the Executive Deferred Incentive Program on March 19, 2025.

Summary

• On March 19, 2025, James A. Lico, President and CEO of Fortive Corp, acquired 4,817.276 notional shares of Fortive common stock through the company's Executive Deferred Incentive Program (EDIP).
• These shares were acquired at a price of $75.25 per share.
• Following this transaction, Lico directly owns 152,212.325 notional shares through the EDIP.
• The notional shares convert on a one-to-one basis into Fortive's common stock.
• Lico immediately vests in 100% of each voluntary contribution to the EDIP Stock Fund.
• Company contributions vest fully upon death or retirement after 5 years of service and reaching age 55, or incrementally after 5 years of participation in the EDIP.
• Upon termination of employment, the vested portion of the EDIP Stock Fund is settled in Fortive's common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine executive compensation transaction, which is generally viewed neutrally. The alignment of executive interests with shareholders is a positive, but the document itself is simply a reporting requirement.

Positives

• The acquisition of shares through the EDIP aligns the CEO's interests with those of the shareholders.
• Immediate vesting of voluntary contributions provides an incentive for participation in the EDIP.
• The EDIP program encourages long-term commitment from executives through its vesting schedule for company contributions.

Industry Context

Executive compensation programs like the EDIP are common in publicly traded companies to incentivize and retain key executives. These programs often involve deferred compensation invested in company stock, aligning executive interests with shareholder value.

Comparison to Industry Standards

• Deferred compensation plans are a standard component of executive compensation packages among large-cap industrial companies like Fortive.
• Companies such as Danaher (DHR) and Siemens (SIEGY) also utilize similar stock-based compensation plans to align executive incentives with long-term shareholder value.
• The vesting schedules and contribution structures are generally in line with industry norms, designed to reward long-term service and performance.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning executive compensation with company performance.
• Employees may view the EDIP as a positive benefit, encouraging participation and long-term commitment.

Key Dates

Keywords

Fortive Corp, James A. Lico, Executive Deferred Incentive Program, EDIP, Notional Shares, Beneficial Ownership, Form 4, Officer, Director