Form 4: Jennifer L. Sherman Acquires Franklin Electric Co. Stock Units Through Deferred Compensation Plan

Director Jennifer L. Sherman acquired stock units in Franklin Electric Co. through a deferred compensation plan, with distribution of shares or cash deferred until January 1, 2029.

Summary

• Jennifer L. Sherman, a director at Franklin Electric Co. Inc., acquired stock units as part of the Nonemployee Directors' Deferred Compensation Plan.
• The transaction occurred on May 2, 2025.
• Ms. Sherman received 3,927.56 stock units, which include 962.08 units for the annual retainer, 1,641.20 units for the annual stock award, 1,188.46 units for chairperson fees, and 135.82 units for committee chair/member fees.
• The price per share was $88.35.
• The distribution of these shares is deferred until January 1, 2029, and will be paid in four annual installments.
• Ms. Sherman can elect to receive the deferred compensation in shares of Franklin common stock or in cash at the time of distribution.
• Following the reported transaction, Ms. Sherman beneficially owns 47,433.37 shares of Franklin Electric Co. Inc. common stock.

Sentiment

Score: 7

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

Positives

• The acquisition of stock units by a director demonstrates confidence in the company's future performance.
• The deferred compensation plan aligns the interests of the director with those of the shareholders.

Future Outlook

The distribution of shares or cash related to the deferred compensation will occur starting January 1, 2029, in four annual installments, based on Ms. Sherman's election at that time.

Industry Context

Director compensation in the form of stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders. Deferred compensation plans are also frequently used to provide tax advantages and long-term incentives.

Comparison to Industry Standards

• Stock-based compensation for directors is a common practice among publicly traded companies, including those in the industrial sector like Franklin Electric.
• Companies such as Pentair, Xylem, and ITT Corporation also utilize stock awards and deferred compensation plans for their directors.
• The specific amount and terms of these plans vary based on company size, performance, and industry norms.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning the director's interests with the company's long-term performance.
• There is no significant impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

Franklin Electric Co. Inc., Jennifer L. Sherman, stock units, deferred compensation, director, beneficial ownership, Form 4