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

Edward Read Simmons, SVP of Strategy at Fortive Corp, reports notional dividend accruals on phantom shares in the Executive Deferred Incentive Program.

Summary

• On March 28, 2025, Edward Read Simmons, SVP Strategy at Fortive Corp, reported changes in beneficial ownership.
• The transaction involved notional dividend accruals on phantom shares in Fortive's Executive Deferred Incentive Program (EDIP) Stock Fund.
• A total of 4.34 phantom shares were acquired at a price of $72.63 per share.
• Following the reported transaction, Simmons beneficially owns 4,904.031 derivative securities.
• The reported securities are notional dividend accruals on phantom shares in the Fortive stock fund under Fortive's Executive Deferred Incentive Program.
• 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 document reflects a routine transaction related to executive compensation, indicating a neutral to slightly positive sentiment as it suggests continued alignment of executive interests with company performance.

Positives

• The executive's participation in the EDIP aligns their interests with the company's performance.
• Immediate vesting of voluntary contributions to the EDIP Stock Fund is a positive incentive for the executive.

Future Outlook

The document does not contain specific forward-looking statements regarding the company's future performance.

Industry Context

Executive compensation and stock ownership are common practices in publicly traded companies to align management's interests with those of shareholders. Deferred compensation plans like the EDIP are frequently used to incentivize long-term performance.

Comparison to Industry Standards

• Executive compensation packages, including deferred incentive programs, are common across publicly traded companies.
• Companies like Danaher (DHR) and Roper Technologies (ROP), which operate in similar industries, also utilize stock-based compensation and deferred compensation plans for their executives.
• The vesting schedules and terms of these plans often vary based on company-specific policies and performance metrics.

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 aspect of the company's compensation structure.

Key Dates

Keywords

Form 4, beneficial ownership, Fortive Corp, EDIP, phantom shares, dividend accruals, executive compensation, Simmons, FTV