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

Director Karen Matsushima King acquired deferred director's fees convertible to 1,610.8575 shares of Franklin Resources Inc. common stock on October 1, 2024.

Summary

• On October 1, 2024, Karen Matsushima King, a director of Franklin Resources Inc., acquired deferred director's fees that are convertible into 1,610.8575 shares of common stock.
• These fees are part of the 2006 Directors Deferred Compensation Plan.
• The fees are based on the performance of Franklin Resources Inc.'s stock and will be paid out in cash in quarterly installments over ten years following the director's separation from service.
• The payout will begin on the earlier of January 20, April 20, July 20, or October 20 immediately following separation from service.
• The director has the option to transfer the hypothetical investment account into an alternative investment account not based on Franklin Resources Inc. stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and well-governed company. The sentiment is neutral to slightly positive as it shows alignment of director interests with the company's performance.

Positives

• The director's acquisition of deferred fees aligns her interests with the performance of Franklin Resources Inc.'s stock.
• The deferred compensation plan provides a long-term incentive for the director.

Future Outlook

The deferred fees will be paid out in cash in quarterly installments over ten years following the director's separation from service, based on the performance of Franklin Resources Inc.'s stock.

Industry Context

This filing is a routine disclosure related to director compensation and is typical for publicly traded companies. It provides transparency into the alignment of director incentives with shareholder value.

Comparison to Industry Standards

• Director compensation packages often include deferred compensation plans to align director interests with long-term shareholder value.
• Companies like BlackRock and T. Rowe Price also utilize deferred compensation plans for their directors.
• The specific terms of these plans, such as payout schedules and investment options, can vary.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director incentives with company performance.

Key Dates