Form 4: Franklin Resources Director King Receives Deferred Fees in Stock

Director Karen Matsushima King acquired deferred director's fees in Franklin Resources stock, convertible to cash payments over ten years following separation from service.

Summary

• On December 20, 2024, Karen Matsushima King, a director at Franklin Resources Inc., acquired deferred director's fees equivalent to 122.0107 shares of Franklin Resources common stock.
• These fees are part of the 2006 Directors Deferred Compensation Plan.
• The fees are payable in cash in substantially equal quarterly installments over ten years following the director's separation from service.
• The payment schedule begins on the earlier of January 20, April 20, July 20, or October 20 immediately following separation.
• The director can transfer the hypothetical investment account into an alternative investment account not based on Franklin Resources stock performance, effective the first day of any calendar quarter.
• Following the transaction, King beneficially owns 40,120.1271 shares of Franklin Resources common stock directly.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a routine director compensation transaction, indicating stability and alignment of interests. There are no red flags or negative implications.

Positives

• The director's compensation plan aligns director interests with the long-term performance of the company.
• The option to transfer to an alternative investment account provides flexibility for the director.

Future Outlook

The director's deferred compensation will be paid out in cash over ten years following separation from service, subject to potential transfer to an alternative investment account.

Industry Context

Director compensation in the financial services industry often includes deferred stock or stock options to align executive interests with shareholder value and long-term company performance.

Comparison to Industry Standards

• Deferred compensation plans are a common practice among publicly traded companies, including financial institutions like BlackRock and T. Rowe Price, to incentivize long-term performance and retention of key personnel.
• The specific terms of deferred compensation plans, such as vesting schedules and payout structures, can vary significantly between companies.

Stakeholder Impact

• Shareholders may view the director's stock ownership positively, as it aligns their interests with the company's performance.
• The deferred compensation plan can incentivize the director to make decisions that benefit the company in the long term.

Key Dates