Form 4: Franklin Electric Director Renee J. Peterson Acquires Stock Units Through Deferred Compensation Plan

Director Renee J. Peterson acquired stock units in Franklin Electric Co. Inc. through the company's deferred compensation plan.

Summary

• Renee J. Peterson, a director at Franklin Electric Co. Inc., acquired 2,517.22 stock units on May 2, 2024.
• The acquisition was made through the Nonemployee Directors' Deferred Compensation Plan.
• Ms. Peterson elected to receive her 2024 Board of Directors retainer, annual stock award, and committee chair/member fees in Franklin Electric Co., Inc. common stock.
• The issuance of these shares is deferred until 2029 and will be paid in ten annual installments.
• The stock units were acquired at a price of $98.72 per unit.
• Following the transaction, Ms. Peterson beneficially owns 39,722.9 shares of Franklin Electric Co. Inc. common stock.
• At distribution, Ms. Peterson may elect to receive her deferred compensation either in shares of Franklin common stock or in cash.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The transaction reflects a director's continued investment in the company, which is generally a good sign. However, it's a routine transaction related to a deferred compensation plan.

Positives

• Director's participation in the deferred compensation plan demonstrates confidence in the company's future performance.

Future Outlook

The issuance of shares is deferred until 2029, to be paid in a series of ten annual installments. At distribution, Ms. Peterson may elect to receive her deferred compensation either in shares of Franklin common stock or in cash.

Management Comments

• Ms. Peterson elected to receive her 2024 Board of Directors retainer, annual stock award, and committee chair/member fees in Franklin Electric Co., Inc. common stock.

Industry Context

Directors often use deferred compensation plans to align their interests with long-term shareholder value. This transaction is a routine part of director compensation.

Comparison to Industry Standards

• Deferred compensation plans for directors are common among publicly traded companies.
• The specifics of the plan, such as the deferral period and payout options, are typical of such arrangements.
• Many companies such as General Electric, Siemens, and ABB offer similar deferred compensation plans to their directors.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it demonstrates a director's commitment to the company's long-term success.

Key Dates