Form 4: Franklin Electric Director Renee Peterson Receives Additional Stock Units from Deferred Compensation Plan

Franklin Electric Co. Inc. Director Renee J. Peterson was credited with 120.03 stock units on May 22, 2025, representing dividends on her deferred compensation, bringing her total beneficial ownership to 39,230.44 units.

Summary

• Renee J. Peterson, a Director of Franklin Electric Co. Inc. (FELE), was credited with 120.03 stock units on May 22, 2025.
• These stock units represent dividends that would have been paid on her previously deferred shares.
• The transaction was made pursuant to the Nonemployee Directors' Deferred Compensation Plan, which was approved by the Board on February 11, 2000, and amended and restated on May 6, 2020.
• Ms. Peterson's beneficial ownership of derivative securities (stock units) increased to 39,230.44 following this transaction.
• The underlying common stock price at the time of credit was $86.35 per share.
• Under the plan, Ms. Peterson has deferred receipt of her 2015-2024 stock award, meeting fees, and retainer.
• At distribution, she may elect to receive her deferred compensation in shares of Franklin common stock or in cash.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. It's a routine compensation event, indicating stability and adherence to established compensation plans, which is generally a positive sign for corporate governance and director alignment, but not a significant market moving event.

Positives

• The transaction reflects ongoing compensation for a director, indicating continued alignment of interests with shareholders.
• The increase in stock units through dividend credits demonstrates the compounding nature of the deferred compensation plan.

Future Outlook

Renee J. Peterson's deferred compensation, including the recently credited stock units, will be distributed upon her retirement or departure from the Board of Directors, or as elected per the terms of the plan, with the option to receive payment in Franklin common stock or cash.

Management Comments

• Ms. Peterson elected to receive her 2015-2024 stock award, meeting fees, and retainer of Franklin Electric Co., Inc common stock, with issuance of such shares deferred until she retires, otherwise leaves the Board of Directors, or has elected to receive such payment per the terms of the Plan (e.g. Stock Units).

Industry Context

This Form 4 filing represents a routine insider transaction related to director compensation, which is a standard practice across publicly traded companies to align director interests with long-term shareholder value. It does not reflect broader industry trends or competitive dynamics.

Corporate Governance

Stakeholder Impact

• Shareholders: The transaction reflects a standard compensation practice for directors, aligning their interests with long-term shareholder value through equity ownership.

Next Steps

• Distribution of Renee J. Peterson's deferred compensation (including these stock units) upon her retirement or departure from the Board of Directors, or as elected per the terms of the plan.

Key Dates

Keywords

Franklin Electric, FELE, Renee J. Peterson, Director Compensation, Stock Units, Deferred Compensation Plan, SEC Form 4, Insider Transaction, Equity Compensation, Corporate Governance