Form 4: Franklin Resources Director Acquires Deferred Fees

Franklin Resources Director Karen Matsushima King reported the acquisition of 108.4599 units of deferred director's fees, effective November 12, 2025.

Summary

• Karen Matsushima King, a Director at Franklin Resources, Inc. (BEN), reported the acquisition of 108.4599 units of Deferred Director's Fees.
• This transaction, dated November 12, 2025, represents a hypothetical investment account under the 2006 Directors Deferred Compensation Plan.
• The account's performance is based on Franklin Resources, Inc. stock, including reinvested dividends.
• The value of the acquired units was $23.05 per unit.
• Following this transaction, Ms. King beneficially owns 59,090.8761 units of these deferred fees.
• Payments will be made in cash in substantially equal quarterly installments over ten years, commencing after the director's separation from service.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive as it indicates continued director alignment with shareholder interests through a structured compensation plan. It is a routine filing with no negative implications.

Positives

• The acquisition of deferred director's fees aligns the director's long-term interests with the company's stock performance, including reinvested dividends.
• The transaction is part of a structured compensation plan, indicating stability in executive remuneration practices.

Future Outlook

The deferred compensation plan outlines future cash payments in substantially equal quarterly installments over ten years, beginning on the earlier of specific quarterly dates immediately following the director's separation from service. The director retains the option to transfer the hypothetical investment account amount into an alternative investment account not based on Franklin Resources, Inc. stock performance.

Industry Context

This filing reflects a standard practice in corporate governance where non-employee directors receive compensation, often including equity-linked components or deferred compensation plans, to align their interests with long-term shareholder value. Such plans are common in the financial services industry, particularly for large asset managers like Franklin Resources, Inc., to attract and retain experienced board members.

Comparison to Industry Standards

• Deferred compensation plans for directors, often tied to company stock performance, are a common practice across the financial services industry and large public companies. This aligns with typical compensation structures designed to foster long-term commitment and shareholder alignment.
• The structure, including a hypothetical investment account and cash payout upon separation, is consistent with many peer companies' director compensation programs, such as those seen at BlackRock, Vanguard, or T. Rowe Price, which also utilize deferred equity or phantom stock units.

Corporate Governance

Related Party Transactions

• The acquisition of deferred director's fees by Karen Matsushima King, a director, constitutes a related party transaction as it involves compensation provided by the company to a member of its board.

Stakeholder Impact

• Shareholders: The deferred compensation plan aligns the director's financial interests with the long-term performance of the company's stock, potentially fostering decisions that benefit shareholders.
• Employees: No direct impact mentioned.

Next Steps

• Quarterly cash installments will commence after the director's separation from service from Franklin Resources, Inc. and its subsidiaries.
• The reporting person may transfer the hypothetical investment account amount into an alternative investment account not based on Franklin Resources, Inc. stock performance effective as of the first day of any calendar quarter.

Key Dates

Keywords

Franklin Resources, BEN, Form 4, Insider Transaction, Director Compensation, Deferred Compensation, Equity Acquisition, Investment Management