Form 4: Fortive Corp Executive Soroye Olumide Reports Changes in Beneficial Ownership

Olumide Soroye, President & CEO of IOS at Fortive Corp, reports notional dividend accruals on phantom shares in the Executive Deferred Incentive Program.

Summary

• On June 28, 2024, Olumide Soroye, President & CEO of IOS at Fortive Corp, reported changes in beneficial ownership.
• The changes involve notional dividend accruals on phantom shares in the Fortive stock fund under the Executive Deferred Incentive Program (EDIP).
• Soroye acquired 5.86 phantom shares at a price of $74.1, bringing the total to 5,433.16 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 positive. It reflects routine executive compensation practices and alignment of interests, with no immediate negative implications.

Positives

• The executive's participation in the EDIP indicates confidence in the company's future performance.

Future Outlook

The document does not contain explicit forward-looking statements, but participation in the EDIP suggests an expectation of future value accrual.

Industry Context

Executive compensation and stock ownership are common practices in publicly traded companies to align management interests with shareholder value.

Comparison to Industry Standards

• Executive compensation packages, including deferred incentive programs, are standard practice among large publicly traded companies like Fortive.
• Companies such as Danaher (DHR), Roper Technologies (ROP), and Honeywell (HON) also utilize similar incentive programs to retain and motivate key executives.
• The vesting schedules and terms of these programs often vary but generally aim to align executive interests with long-term shareholder value creation.

Stakeholder Impact

• The disclosure provides transparency to shareholders regarding executive compensation and ownership.

Key Dates