Form 4: Franklin Resources Director King Acquires Deferred Director's Fees

Director Karen Matsushima King acquired deferred director's fees convertible to common stock in Franklin Resources, Inc.

Summary

• On February 4, 2025, Karen Matsushima King, a director of Franklin Resources, Inc., acquired deferred director's fees that are convertible into 9,370.495 shares of common stock.
• The price of the derivative security is $20.81.
• Following the transaction, King directly owns 51,863.6158 shares of Franklin Resources, Inc.'s common stock through a hypothetical investment account calculation of deferred director's fees.
• These fees are part of the 2006 Directors Deferred Compensation Plan and are payable in cash in substantially equal quarterly installments over ten years following separation from service.
• The exercisable and expiration dates assume the director's separation from service from Franklin Resources, Inc. and its subsidiaries occurs in the February following the director's 75th birthday.

Sentiment

Score: 7

Explanation: The document is a routine regulatory filing indicating a director's acquisition of deferred compensation. It doesn't inherently convey strong positive or negative sentiment, but the acquisition suggests continued alignment with the company's long-term success.

Future Outlook

The deferred director's fees will be paid out in cash in substantially equal quarterly installments over ten years following the director's separation from service from Franklin Resources, Inc. and its subsidiaries.

Industry Context

This filing is a routine disclosure of a director's acquisition of deferred compensation, which is a common practice in corporate governance to align the interests of directors with the long-term performance of the company. It is similar to other filings made by directors and officers of publicly traded companies regarding their holdings and transactions in company stock.

Comparison to Industry Standards

• Deferred compensation plans for directors are a common practice among publicly traded companies, including asset managers like BlackRock and T. Rowe Price.
• The structure of Franklin Resources' plan, with payouts over ten years following separation from service, is similar to plans offered by other large financial institutions.
• The ability to transfer the hypothetical investment account into an alternative investment account not based on the performance of Franklin Resources, Inc. stock is a feature that provides flexibility to the director, which is also seen in some other companies' deferred compensation plans.

Stakeholder Impact

• The transaction has a minimal direct impact on shareholders, employees, customers, suppliers, and creditors.
• It reflects the company's compensation practices for its directors.

Key Dates