Form 4: Fortive Executive Accrues Phantom Shares in Deferred Incentive Plan

Fortive Corp's President & CEO of PT, Tamara S. Newcombe, accrued 8.758 notional dividend shares in the company's Executive Deferred Incentive Program, increasing her beneficial ownership to 7,847.195 phantom shares.

Summary

• Tamara S. Newcombe, President & CEO of PT at Fortive Corp (FTV), acquired 8.758 notional dividend accruals on phantom shares on June 27, 2025.
• The transaction occurred as part of the Executive Deferred Incentive Program (EDIP) Fortive Stock Fund.
• The value used for the accrual was $71.6 per phantom share, based on the closing price of Fortive's common stock on the NYSE.
• Following this transaction, Ms. Newcombe's total beneficial ownership in the EDIP Stock Fund increased to 7,847.195 phantom shares.
• These notional shares convert on a one-to-one basis to common stock.
• Voluntary contributions to the EDIP Stock Fund vest immediately at 100%.
• Contributions made by the Issuer vest 100% upon the earlier of the reporting person's death, retirement (following at least 5 years of service and reaching age 55), or one-tenth per year of participation after five years of participation, 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: 6

Explanation: The document reports a routine accrual of phantom shares as part of an executive's deferred compensation plan, which is a neutral event but can be viewed as slightly positive due to increased alignment of executive interests with shareholder value.

Positives

• The executive's increased beneficial ownership of phantom shares aligns her interests with long-term shareholder value.
• Participation in the Executive Deferred Incentive Program indicates a commitment to the company's long-term performance and executive retention.

Negatives

• No direct negatives identified; this is a routine accrual of deferred compensation.

Risks

• No specific risks related to company operations, financial health, or market conditions are disclosed in this Form 4, which primarily reports an executive's transaction.

Future Outlook

The vesting schedule for issuer contributions to the Executive Deferred Incentive Program indicates future settlement of vested portions in Fortive common stock upon specific conditions such as death, retirement (after 5 years of service and reaching age 55), or a gradual vesting over ten years after five years of participation.

Industry Context

Executive deferred compensation programs, involving phantom shares or similar instruments, are common mechanisms in publicly traded companies to align executive incentives with long-term shareholder value and retain key talent. This transaction reflects a standard practice within the broader industry for executive remuneration.

Comparison to Industry Standards

• The structure of the Executive Deferred Incentive Program, including vesting conditions tied to service and age, is consistent with common executive compensation practices observed across various industries for retaining senior leadership and fostering long-term commitment. Specific comparable companies or projects are not detailed in this filing, as it focuses on an individual executive's transaction.

Related Party Transactions

• The transaction involves an executive's participation in the company's Executive Deferred Incentive Program, which is a standard form of related party compensation arrangement.

Stakeholder Impact

• Shareholders: Increased alignment of executive interests with long-term shareholder value through participation in the deferred compensation plan.
• Employees: No direct impact on general employees, but reflects the company's executive compensation structure.

Next Steps

• Continued accrual of notional dividends on phantom shares as per the EDIP.
• Future vesting of issuer contributions based on specified conditions (death, retirement, or annual participation).
• Settlement of vested phantom shares into Fortive common stock upon termination of employment.

Key Dates

Keywords

Fortive, FTV, SEC Form 4, insider transaction, executive compensation, phantom shares, deferred incentive program, beneficial ownership