Form 4: Franklin Resources Director Defers Compensation

Franklin Resources Director John Y. Kim acquired 1,375.3327 units of deferred director's fees, increasing his beneficial ownership to 64,750.0775 units.

Summary

• John Y. Kim, a Director of Franklin Resources Inc. (BEN), acquired 1,375.3327 units of Deferred Director's Fees (FRI) on October 1, 2025.
• These fees represent a hypothetical investment account under the 2006 Director Deferred Compensation Plan, based on the performance of Franklin Resources Inc. stock, including reinvested dividends.
• The derivative securities have a price of $22.54 per unit and are convertible into Common Stock, par value $.10.
• Following this transaction, John Y. Kim beneficially owns a total of 64,750.0775 derivative securities.
• The deferred fees are payable in one payment following the director's separation from service from Franklin Resources, Inc. and its subsidiaries.
• The director has the option to 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.

Sentiment

Score: 5

Explanation: The filing is neutral as it reports a routine, pre-scheduled deferred compensation transaction for a director, which does not indicate any significant positive or negative operational or financial developments for the company.

Positives

• The director continues to accumulate a stake in the company through deferred compensation, aligning their interests with shareholders.

Future Outlook

The deferred director's fees are structured to be paid out in a single payment following the director's separation from service from Franklin Resources, Inc. and its subsidiaries. The director retains the flexibility to transfer the hypothetical investment account into alternative investment accounts not tied to the company's stock performance.

Industry Context

This filing represents a routine insider transaction related to director compensation, which is a common practice across publicly traded companies in the financial services industry and beyond. It reflects a standard mechanism for directors to defer compensation and maintain an equity-linked stake in the company.

Comparison to Industry Standards

• Deferred compensation plans for directors, often linked to company stock performance, are a standard practice in corporate governance across various industries, including asset management firms like Franklin Resources. This aligns director interests with long-term shareholder value.
• The ability for directors to elect alternative investment accounts for deferred compensation is also a common feature, providing flexibility and risk management options for individuals.

Stakeholder Impact

• Shareholders: The transaction indicates continued alignment of a director's financial interests with the company's stock performance, as a portion of their compensation is tied to equity.

Next Steps

• Payment of deferred director's fees will occur in one payment following 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(s) not based on the performance of Franklin Resources, Inc. stock effective as of the first day of any calendar quarter.

Key Dates

Keywords

Franklin Resources, BEN, John Y. Kim, Director Compensation, Deferred Fees, Insider Transaction, Form 4, Equity Compensation