Form 4: Franklin Electric Co. Inc. Director Chris Villavarayan Acquires Stock Units Through Deferred Compensation Plan

Director Chris Villavarayan acquired 2,812.68 stock units of Franklin Electric Co. Inc. through a deferred compensation plan election.

Summary

• Chris Villavarayan, a director of Franklin Electric Co. Inc., acquired 2,812.68 stock units on May 2, 2025.
• The acquisition was made through the Nonemployee Directors' Deferred Compensation Plan.
• Mr. Villavarayan elected to receive his 2025 Board of Directors retainer, stock award, and committee member fees in Franklin Electric Co., Inc. common stock, with the issuance of such shares being deferred.
• The stock units were acquired at a price of $88.35 per unit.
• The breakdown of the stock units is as follows: 962.08 for the annual retainer, 1,641.20 for the annual stock award, and 209.40 for committee chair/member fees.
• At distribution, Mr. Villavarayan can choose to receive the deferred compensation in shares of Franklin common stock or in cash.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The director's acquisition of stock units indicates confidence in the company's future, but it's a routine transaction.

Positives

• The acquisition of stock units demonstrates the director's continued investment and confidence in Franklin Electric Co. Inc.

Future Outlook

The director has the option to receive deferred compensation in shares of Franklin common stock or in cash at the time of distribution, according to the terms of the plan.

Management Comments

• Mr. Villavarayan elected to receive his 2025 Board of Directors retainer, stock award, and committee member fees in Franklin Electric Co., Inc. common stock, issuance of such shares have been elected to be deferred.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies. Directors often receive compensation in the form of stock or stock options to align their interests with those of the shareholders.

Comparison to Industry Standards

• Deferred compensation plans for directors are a common practice among publicly traded companies, including comparables such as Pentair, Xylem, and ITT Inc.
• These plans often allow directors to defer income and receive it in the form of stock or cash at a later date, providing tax benefits and aligning their interests with the long-term performance of the company.
• The specific terms of deferred compensation plans can vary, but they generally aim to attract and retain qualified directors.

Stakeholder Impact

• The transaction could have a minor positive impact on shareholder sentiment, as it signals confidence from a company director.

Key Dates

Keywords

stock units, deferred compensation, director, Franklin Electric, FELE, acquisition, insider trading