Form 4: Franklin Electric Director Victor Grizzle Receives Stock Units Under Deferred Compensation Plan

Director Victor Grizzle received stock units in Franklin Electric Co., Inc. under the company's deferred compensation plan, with issuance of shares deferred until 2025.

Summary

• Victor Grizzle, a director at Franklin Electric Co., Inc., received stock units as part of the Nonemployee Directors' Deferred Compensation Plan.
• The transaction occurred on May 2, 2024, and involves the crediting of 2,441.25 stock units.
• These stock units represent Mr. Grizzle's 2024 Board of Directors retainer, annual stock award, and committee chair/member fees.
• The issuance of the underlying shares of Franklin Electric common stock is deferred until 2025.
• At distribution in 2025, Mr. Grizzle can elect to receive his deferred compensation in shares of Franklin common stock or in cash.
• Following the reported transaction, Mr. Grizzle beneficially owns 13,121.99 shares of Franklin Electric common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating stable corporate governance and alignment of interests. It's a neutral to slightly positive signal.

Positives

• The deferred compensation plan aligns director compensation with the long-term performance of Franklin Electric.
• Director Grizzle's election to receive compensation in stock units demonstrates confidence in the company's future prospects.

Future Outlook

The issuance of shares is deferred until 2025, at which point Mr. Grizzle can choose to receive shares or cash.

Industry Context

Director compensation packages often include stock-based awards to align management interests with shareholder value. Deferred compensation plans are a common tool for executives and directors to manage their tax liabilities and retirement planning.

Comparison to Industry Standards

• Stock-based compensation for directors is a common practice among publicly traded companies.
• Companies like Pentair, Xylem, and ITT Inc. also utilize stock awards as part of their director compensation packages.
• The specific amount and vesting schedules vary based on company size, performance, and industry benchmarks.

Corporate Governance

Stakeholder Impact

• Shareholders may view this as a positive sign, as it aligns the director's interests with the company's long-term success.
• Employees may see this as a sign of stability and good governance within the company.

Key Dates