Form 4: Johnson & Johnson Director Acquires Deferred Share Units

Eugene A. Woods, a director at Johnson & Johnson, acquired deferred share units (DSUs) as part of his director compensation.

Summary

• Eugene A. Woods, a director at Johnson & Johnson, received 208.793 deferred share units (DSUs).
• These DSUs were acquired as part of the deferral of his cash retainer under the company's Amended and Restated Deferred Fee Plan for Directors.
• The DSUs will be settled in cash upon the termination of Mr. Woods' directorship.
• Each DSU represents the fair market value of one share of Johnson & Johnson common stock on the business day prior to the settlement date.
• The acquisition includes dividend equivalent rights, which accrue to Mr. Woods on the DSUs he holds.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally to slightly positive as it aligns director interests with shareholders.

Positives

• The acquisition of DSUs aligns director compensation with the company's stock performance.
• The deferral plan allows for long-term alignment of interests between the director and the company.

Risks

• The value of the DSUs is subject to the fluctuation of Johnson & Johnson's stock price.

Future Outlook

The DSUs will be settled in cash upon the termination of Mr. Woods' directorship, with the value dependent on the stock price at that time.

Industry Context

This type of compensation is common for directors of large public companies, aligning their interests with shareholders through equity-based awards.

Comparison to Industry Standards

• Deferred share units are a common form of compensation for directors in large public companies like Johnson & Johnson.
• Companies such as Pfizer (PFE) and Merck (MRK) also use similar deferred compensation plans for their board members.
• The value of these units is typically tied to the company's stock performance, aligning director interests with shareholder value.

Stakeholder Impact

• The acquisition of DSUs has a minor positive impact on shareholders by aligning director interests with the company's long-term performance.

Key Dates

Keywords

Deferred Share Units, DSU, Director Compensation, Johnson & Johnson, JNJ, Eugene A. Woods, Deferred Fee Plan, Stock