Form 4: Fortive SVP Schwarz Reports Phantom Share Accrual

Fortive's SVP of Strategic & Corporate Development, Jonathan L. Schwarz, reported a routine accrual of 13.984 phantom shares from dividend equivalents in the company's Executive Deferred Incentive Program.

Summary

• Jonathan L. Schwarz, SVP Strategic & Corporate Development at Fortive Corp (FTV), reported a transaction on September 26, 2025.
• The transaction involved the accrual of 13.984 phantom shares from notional dividend equivalents in the Fortive stock fund under the Executive Deferred Incentive Program (EDIP).
• The phantom shares were accrued at a price of $48.53, based on the closing price of Fortive's common stock on the NYSE on the transaction date.
• Following this accrual, Jonathan L. Schwarz beneficially owns a total of 11,325.259 phantom shares.
• The total number of phantom shares reflects an anti-dilution adjustment applied due to the spin-off of Ralliant Corporation from Fortive on June 28, 2025.
• Vesting for voluntary contributions to the EDIP Stock Fund is immediate (100%).
• Vesting for contributions made by the Issuer occurs 100% upon the earlier of the Reporting Person's death, or 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.

Sentiment

Score: 5

Explanation: This is a neutral, routine disclosure of executive compensation activity, specifically dividend accruals on phantom shares, with no direct positive or negative market implications.

Positives

• The accrual of phantom shares from dividend equivalents is a standard component of executive compensation, aligning executive interests with shareholder returns.
• The Executive Deferred Incentive Program (EDIP) encourages long-term retention and performance by linking executive compensation to company stock performance.

Future Outlook

The filing details the vesting schedule for phantom shares under the Executive Deferred Incentive Program (EDIP), indicating that issuer contributions 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.

Industry Context

This filing represents a routine disclosure of executive compensation activity, specifically the accrual of dividend equivalents on phantom shares within a deferred incentive program. Such programs are common across publicly traded companies to align executive interests with long-term shareholder value and are a standard component of executive remuneration packages.

Comparison to Industry Standards

• Deferred incentive programs with phantom shares and dividend accruals are common executive compensation practices across large, publicly traded corporations.
• This specific transaction aligns with typical structures for such plans, though the filing does not provide specific comparable companies or projects for direct benchmarking.

Related Party Transactions

• Participation in the Executive Deferred Incentive Program (EDIP) by a senior executive constitutes a related party transaction, which is a standard component of executive compensation and is disclosed as part of the company's governance.

Stakeholder Impact

• Shareholders: Provides transparency on executive compensation structure and equity participation, demonstrating alignment of executive interests with company performance.
• Employees: Reflects standard executive benefits and compensation practices within the company.

Key Dates

Recommendation

This Form 4 filing details a routine, non-discretionary accrual of phantom shares from dividend equivalents for a senior executive. It provides transparency into executive compensation but does not present new information that would fundamentally alter the investment thesis for Fortive Corp. It is a standard disclosure and does not indicate any significant operational or strategic changes that would warrant a change in investment recommendation.

Keywords

Fortive, FTV, Jonathan L. Schwarz, Form 4, SEC filing, insider transaction, executive compensation, phantom shares, EDIP, dividend accrual, Ralliant spin-off