Form 4: Fortive Corp Director James A. Lico Reports Dividend Accruals on Phantom Shares

James A. Lico, President and CEO of Fortive Corp, reports notional dividend accruals on phantom shares in the company's Executive Deferred Incentive Program.

Summary

• On June 28, 2024, James A. Lico, President and CEO of Fortive Corp, reported the acquisition of 158.63 phantom shares in the Fortive stock fund under the Executive Deferred Incentive Program (EDIP).
• These shares represent notional dividend accruals.
• The price per share used for the dividend accrual calculation was $74.1.
• Following this transaction, Lico's direct ownership includes 147,090.77 shares.
• The reported securities are notional dividend accruals on phantom shares in the Fortive stock fund (the 'EDIP Stock Fund') under Fortive's Executive Deferred Incentive Program (the 'EDIP').
• The number of phantom shares accrued as a result of such notional dividend accruals is based on the closing price of the Issuer's common stock as reported on the NYSE on the date such dividend accruals are credited to the EDIP Stock Fund, which is the price shown in Table II, Column 8 above.
• The notional shares convert on a one-to-one basis.
• The Reporting Person immediately vests in 100% of each voluntary contribution to the EDIP Stock Fund.
• The Reporting Person will vest in all contributions to the EDIP Stock Fund by the Issuer as follows: 100% upon the earlier of the Reporting Person's death, or upon retirement following at least 5 years of service with the Issuer and reaching the age of 55, or, if earlier, one-tenth per year of participation following five years of participation, in each case in accordance with the EDIP.
• Upon termination of employment, the vested portion of the EDIP Stock Fund is settled in the Issuer's common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects routine executive compensation and alignment of interests. There are no indications of negative events or concerns.

Positives

• The acquisition of phantom shares through dividend accruals indicates the executive's continued participation in and benefit from the company's performance.
• The vesting schedule of the EDIP encourages long-term commitment from the executive.

Industry Context

Form 4 filings are standard disclosures required by the SEC to ensure transparency in trading activities by company insiders. This filing indicates routine compensation and benefit-related transactions.

Comparison to Industry Standards

• Executive compensation packages often include deferred incentive programs and stock-based awards to align management's interests with those of shareholders.
• Companies like Danaher (DHR) and Roper Technologies (ROP), which operate in similar industrial sectors, also utilize deferred compensation and stock option plans for their executives.
• The vesting schedules and terms of these plans are generally comparable across the industry, aiming to retain key personnel and incentivize long-term value creation.

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders as it relates to executive compensation and does not involve significant changes in company operations or financial position.

Key Dates