Form 4: Director Kim Y. Acquires Deferred Franklin Resources Shares

Franklin Resources Director John Y. Kim reported the acquisition of 1,407.563 shares of deferred director's fees under the company's compensation plan.

Summary

• John Y. Kim, a Director at Franklin Resources, Inc. (BEN), reported a transaction involving deferred director's fees.
• On January 2, 2026, Kim acquired 1,407.563 units of Deferred Director's Fees (FRI).
• These fees represent a hypothetical investment account based on the performance of Franklin Resources Inc.'s common stock, including reinvested dividends.
• The underlying security is Common Stock, par value $.10, with a price of $23.8 per derivative security.
• Following this transaction, Kim beneficially owns 67,052.2113 derivative securities.
• The deferred fees are payable in one payment following Kim's separation from service from Franklin Resources, Inc. and its subsidiaries.
• The exercisable and expiration dates for these deferred fees are April 20, 2036, assuming separation from service in the February following the director's 75th birthday.
• The transaction was made pursuant to a Rule 10b5-1(c) plan.

Sentiment

Score: 7

Explanation: The filing indicates a routine, positive alignment of a director's interests with the company's long-term performance through deferred equity compensation. No negative implications are present.

Positives

• Director John Y. Kim increased his beneficial ownership of Franklin Resources stock through deferred compensation, aligning his interests with shareholders.
• The acquisition of deferred director's fees indicates continued commitment from a key director.

Risks

• The value of the deferred director's fees is tied to the performance of Franklin Resources Inc.'s stock, meaning a decline in stock price would reduce the value of these holdings.
• The reporting person may transfer the hypothetical investment account amount into an alternative investment account(s) not based on the performance of Franklin Resources, Inc. stock, which could reduce direct alignment with BEN stock performance.

Future Outlook

The deferred compensation plan ties the director's future payout to the long-term performance of Franklin Resources' stock until separation from service, aligning future interests.

Industry Context

This is a routine insider transaction filing, common for directors receiving compensation in equity or equity-linked instruments. It reflects standard corporate governance practices for aligning director incentives with shareholder value in the asset management industry.

Comparison to Industry Standards

• The use of deferred equity compensation for directors is a common practice across the financial services industry, including asset managers like BlackRock, Vanguard, and T. Rowe Price, to foster long-term alignment.
• The structure, tying compensation to company stock performance (including reinvested dividends), is standard for such plans, similar to those seen at peers.
• The Rule 10b5-1 plan indicates a pre-arranged transaction, which is a best practice for insiders to avoid accusations of trading on material non-public information.

Corporate Governance

Stakeholder Impact

• Shareholders: Increased alignment of director's interests with shareholder value through equity ownership.

Next Steps

• The deferred fees will continue to track the performance of Franklin Resources Inc.'s stock until the director's separation from service.
• The reporting person has the option to transfer the hypothetical investment account amount into alternative investment accounts not based on Franklin Resources, Inc. stock.

Key Dates

Recommendation

This Form 4 filing details a routine acquisition of deferred director's fees by a director, which is a standard component of executive compensation designed to align interests with long-term shareholder value. It does not present new information that would fundamentally alter the investment thesis for Franklin Resources, Inc., thus a 'hold' recommendation remains appropriate based solely on this filing.

Keywords

Franklin Resources, BEN, Form 4, Insider Trading, Director Compensation, Deferred Fees, Stock Ownership, Rule 10b5-1