Form 4: Fortive Corp Executive Reports Dividend Accruals on Phantom Shares

Jonathan L. Schwarz, SVP of Corporate Development at Fortive Corp, reports notional dividend accruals on phantom shares in the Executive Deferred Incentive Program.

Summary

• On March 28, 2024, Jonathan L. Schwarz, SVP of Corporate Development at Fortive Corp, reported changes in beneficial ownership.
• The report details the acquisition of 6.1 phantom shares in the Fortive stock fund under the Executive Deferred Incentive Program (EDIP) due to notional dividend accruals.
• These phantom shares are based on the closing price of Fortive's common stock on the NYSE, valued at $86.02 per share.
• Schwarz directly owns 7,317.1 derivative securities after the reported transaction.
• 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: 5

Explanation: The document is a routine regulatory filing, so the sentiment is neutral.

Industry Context

This filing is a routine disclosure related to executive compensation and is typical for publicly traded companies. It reflects standard practices for incentivizing and retaining key personnel through equity-based compensation plans.

Comparison to Industry Standards

• Executive compensation packages including deferred incentive programs are common among large, publicly traded companies like Fortive.
• Companies such as Danaher (DHR), Siemens (SIE.DE), and Honeywell (HON) also utilize similar strategies to align executive interests with shareholder value.
• The vesting schedules and terms described in the EDIP are generally consistent with industry norms for executive compensation plans.

Stakeholder Impact

• The filing provides transparency to shareholders regarding executive compensation.
• The EDIP aims to align executive interests with long-term shareholder value.

Key Dates