Form 4: Franklin Electric Director's Deferred Stock Units Update

Franklin Electric Director Jennifer L. Sherman received 138.82 stock units as dividends on deferred compensation, increasing her beneficial ownership to 47,849.43 units.

Summary

• Jennifer L. Sherman, a Director of Franklin Electric Co., Inc. (FELE), was credited with 138.82 stock units on November 20, 2025.
• These stock units represent dividends that would have been paid on her deferred shares under the Nonemployee Directors' Deferred Compensation Plan.
• The plan, approved on February 11, 2000, and amended on May 6, 2020, allows Ms. Sherman to defer receipt of her stock awards, meeting fees, retainer, and lead independent director/chairperson fees.
• Following this transaction, Ms. Sherman's total beneficial ownership of stock units is 47,849.43.
• The value per stock unit used for the dividend calculation was $91.08.
• At distribution, Ms. Sherman may elect to receive her deferred compensation in either shares of Franklin common stock or cash.

Sentiment

Score: 5

Explanation: The filing reports a routine, pre-planned insider transaction related to deferred compensation, which is neutral in sentiment. It reflects standard corporate governance and director alignment without indicating any significant positive or negative operational or financial events.

Positives

• Director Jennifer L. Sherman's continued participation in the deferred compensation plan demonstrates alignment of her interests with long-term shareholder value.
• The crediting of dividend equivalents in the form of stock units further increases the director's equity stake in the company.

Future Outlook

Ms. Sherman's deferred compensation, including these stock units, will be distributed upon her retirement, departure from the Board, or per the terms of the plan, with an election option to receive payment in Franklin common stock or cash.

Management Comments

• Ms. Sherman elected to receive her 2014-2022 stock award, meeting fees, and retainer, 2023-2024 stock award, meeting fees, retainer and lead independent director fees and 2025 stock award, meeting fees, retainer and chairperson fees of Franklin Electric Co., Inc common stock, 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 filing is a routine insider transaction report and does not provide specific insights into broader industry trends or competitive landscape. It reflects standard corporate governance practices for director compensation.

Corporate Governance

Related Party Transactions

• Crediting of 138.82 stock units to Director Jennifer L. Sherman under the Nonemployee Directors' Deferred Compensation Plan for dividends on deferred shares, increasing her beneficial ownership to 47,849.43 stock units. This is a transaction between a director and the company as part of her compensation arrangement.

Stakeholder Impact

• Shareholders: The transaction reflects a director's continued equity stake and long-term alignment with the company's performance, which is generally viewed positively.
• Employees: No direct impact on employees is indicated by this filing.
• Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated by this filing.

Next Steps

• Future distribution of Ms. Sherman's deferred compensation, including these stock units, upon her retirement, departure from the Board, or per plan terms.

Key Dates

Keywords

Franklin Electric, FELE, Form 4, Insider Transaction, Director Compensation, Deferred Compensation, Stock Units, Beneficial Ownership