Form 4: Johnson & Johnson CEO Joaquin Duato Exercises Stock Options

Sentiment:

SEC Form 4 Filing


CEO Joaquin Duato exercised stock options and sold shares to cover the exercise price and taxes, according to a recent SEC Form 4 filing.

Summary

  • Joaquin Duato, CEO and Chairman of the Board of Johnson & Johnson, executed transactions involving the company's common stock on February 7, 2025.
  • Duato exercised employee stock options, acquiring 126,369 shares at an exercise price of $100.06 per share.
  • Simultaneously, 100,643 shares were withheld to cover the exercise price and associated taxes at a price of $153.12.
  • Following these transactions, Duato directly owns 389,028 shares of Johnson & Johnson common stock.
  • Duato also indirectly owns 946 shares through a 401k plan.

Sentiment

Score: 5

Explanation: This is a routine transaction related to executive compensation and doesn't necessarily indicate a positive or negative outlook for the company.

Industry Context

Executive stock option exercises are a common practice in publicly traded companies and are often viewed as a way to align management's interests with those of shareholders. The sale of shares to cover the exercise price and taxes is also a typical occurrence.

Comparison to Industry Standards

  • Executive compensation packages, including stock options, are standard practice among large, publicly traded companies like Johnson & Johnson.
  • Companies such as Pfizer (PFE), Merck (MRK), and AbbVie (ABBV) also utilize stock options as part of their executive compensation plans.
  • The specific terms and conditions of these options, such as the exercise price and vesting schedule, can vary widely based on company performance and individual executive agreements.

Key Dates

DateDescription
02/10/2018Date the Employee Stock Options were exercisable
01/31/2025Plan's most recent reporting date for dividend reinvestment.
02/07/2025Date of stock option exercise and share withholding.
02/09/2025Expiration date of the Employee Stock Options
02/11/2025Date of Form 4 signature.

Keywords

Form 4, Stock Options, Joaquin Duato, Johnson & Johnson, JNJ, Executive Compensation, Beneficial Ownership

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