Form 4: Franklin Electric Director Gregg Sengstack Reports Acquisition of Stock Units Under Deferred Compensation Plan

Director Gregg Sengstack acquired 1,641.2 stock units of Franklin Electric Co., Inc. under the company's deferred compensation plan.

Summary

• On May 2, 2025, Gregg C. Sengstack, a director of Franklin Electric Co., Inc., acquired 1,641.2 stock units.
• The acquisition was made under the Nonemployee Directors' Deferred Compensation Plan.
• The stock units were awarded as part of his 2025 Board of Directors stock award.
• The issuance of shares is deferred until the later of January 1, 2028, or January 1 following the year he retires from the Board of Directors.
• The price of the common stock at the time of the transaction was $88.35.
• At distribution, Mr. Sengstack may elect to receive his deferred compensation either in shares of Franklin common stock or in cash.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a routine transaction related to director compensation, indicating alignment of interests between management and shareholders.

Positives

• The acquisition of stock units aligns the director's interests with the long-term performance of the company.
• The deferred compensation plan encourages long-term commitment from board members.

Future Outlook

The distribution of shares is deferred until the later of January 1, 2028, or January 1 following the year Mr. Sengstack retires from the Board of Directors; at distribution, Mr. Sengstack may elect to receive his deferred compensation either in shares of Franklin common stock or in cash.

Industry Context

Directors receiving stock-based compensation is a common practice to align their interests with shareholders and incentivize long-term value creation. Deferred compensation plans are also frequently used to retain board members.

Comparison to Industry Standards

• Stock-based compensation for directors is a standard practice across publicly traded companies.
• Deferred compensation plans are often used to attract and retain experienced board members, similar to practices at companies like Pentair and Xylem.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning the director's interests with the company's long-term performance.

Key Dates

Keywords

stock units, deferred compensation, director, Franklin Electric, FELE, Sengstack, Form 4, beneficial ownership