Form 4: Franklin Resources Director Karen Matsushima King Reports Acquisition of Deferred Director's Fees

Director Karen Matsushima King reports acquisition of deferred director's fees in Franklin Resources stock.

Summary

• On November 1, 2024, Karen Matsushima King, a director of Franklin Resources Inc. (BEN), acquired deferred director's fees equivalent to 119.9616 shares of common stock.
• The transaction was reported on a Form 4 filing with the SEC.
• Following the transaction, King beneficially owns 39,539.8915 shares of Franklin Resources Inc.
• The deferred director's fees are part of the 2006 Directors Deferred Compensation Plan and are payable in cash in quarterly installments over ten years following separation from service.

Sentiment

Score: 5

Explanation: The document is a routine regulatory filing and does not contain information that would significantly impact investor sentiment positively or negatively.

Positives

• The acquisition of deferred director's fees aligns the director's interests with the long-term performance of the company.
• The deferred compensation plan provides a structured payout over time, which can be seen as a conservative approach to executive compensation.

Future Outlook

The deferred director's fees will be paid out in cash in substantially equal quarterly installments over ten years beginning on the earlier of January 20, April 20, July 20 or October 20 immediately following the director's separation from service from Franklin Resources, Inc. and its subsidiaries and continuing on each January 20, April 20, July 20 and October 20 thereafter, except that if any such date is a Saturday, Sunday or holiday, then the quarterly installment shall be paid on the next business day.

Industry Context

Director compensation, including deferred compensation plans, is a common practice in the financial services industry to align executive interests with shareholder value.

Comparison to Industry Standards

• Deferred compensation plans are a standard component of executive compensation packages in the financial services industry, often benchmarked against peers like BlackRock, T. Rowe Price, and State Street.
• The specifics of Franklin Resources' 2006 Directors Deferred Compensation Plan would need to be compared to similar plans at these firms to assess its relative generosity and structure.

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders.
• It reflects the company's compensation practices for its directors.

Key Dates