Form 4: Director Renee J. Peterson Reports Acquisition of Franklin Electric Co. Stock Units
SEC Form 4
Renee J. Peterson, a director of Franklin Electric Co. Inc., reports the acquisition of stock units representing deferred compensation.
Summary
- On August 15, 2024, Renee J. Peterson, a director at Franklin Electric Co. Inc. (FELE), acquired 99.93 stock units.
- These stock units represent deferred compensation under the Nonemployee Directors' Deferred Compensation Plan.
- The acquisition is related to dividends that would have been paid on deferred shares.
- The price of the derivative security is $99.62.
- Following the transaction, Ms. Peterson beneficially owns 39,921.78 shares of Franklin Electric Co. Inc. common stock.
- Ms. Peterson may elect to receive her deferred compensation in shares of Franklin common stock or in cash upon distribution.
Sentiment
Score: 7
Explanation: The sentiment is neutral to slightly positive. The filing indicates standard director compensation practices and alignment of interests with shareholders.
Positives
- The acquisition of stock units reflects continued director participation in the company's deferred compensation plan.
Future Outlook
Ms. Peterson may elect to receive her deferred compensation in shares of Franklin common stock or in cash upon distribution, according to the terms of the plan.
Industry Context
Director stock ownership is common and aligns director interests with shareholders. Deferred compensation plans are a typical component of executive and director compensation packages.
Comparison to Industry Standards
- Director compensation packages often include a mix of cash, stock options, and deferred compensation.
- Companies like Pentair, Xylem, and ITT also have similar director compensation structures.
- The amount of stock units awarded is relatively small and likely represents a standard dividend accrual on previously deferred shares.
Stakeholder Impact
- The transaction has a minor positive impact on shareholders by aligning director interests with company performance.
Key Dates
| Date | Description |
|---|---|
| February 11, 2000 | Date the Board of Directors approved the Nonemployee Directors' Deferred Compensation Plan. |
| May 6, 2020 | Date the Nonemployee Directors' Deferred Compensation Plan was amended and restated. |
| August 15, 2024 | Date of the transaction where Renee J. Peterson acquired 99.93 stock units. |
| August 16, 2024 | Date of the Form 4 filing. |
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