Form 4: Fortive Corp Executive Schwarz Reports Changes in Beneficial Ownership

SVP of Corporate Development Jonathan L Schwarz reports notional dividend accruals on phantom shares in Fortive's Executive Deferred Incentive Program.

Summary

• Jonathan L Schwarz, SVP of Corporate Development at Fortive Corp, filed a Form 4.
• The form reports changes in beneficial ownership due to notional dividend accruals on phantom shares in the Fortive Executive Deferred Incentive Program (EDIP).
• On June 28, 2024, Schwarz acquired 7.9 phantom shares through dividend accruals at a price of $74.1 per share.
• Following the transaction, Schwarz beneficially owns 7,324.96 shares in the EDIP Stock Fund.
• 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 document is a routine regulatory filing related to executive compensation. It doesn't contain any particularly positive or negative news, but the existence of the EDIP is a positive sign of alignment between management and shareholders.

Positives

• The executive's participation in the EDIP indicates alignment with the company's long-term performance.
• Immediate vesting in voluntary contributions to the EDIP Stock Fund is a positive incentive for the executive.

Future Outlook

The EDIP provides a mechanism for long-term equity-based compensation, aligning executive interests with shareholder value.

Industry Context

Executive compensation packages often include deferred incentive programs to retain key personnel and incentivize performance. This filing reflects a standard practice in corporate governance.

Stakeholder Impact

• Shareholders may view the executive's participation in the EDIP as a positive sign of alignment with their interests.
• The EDIP serves as an incentive for the executive to contribute to the company's long-term success.

Key Dates