Form 4: Johnson & Johnson Director Acquires Deferred Share Units

Director Eugene A. Woods acquired deferred share units (DSUs) representing the fair market value of Johnson & Johnson common stock as part of the company's Amended and Restated Deferred Fee Plan for Directors.

Summary

• On March 4, 2025, Eugene A. Woods, a director of Johnson & Johnson, acquired 188.14 Deferred Share Units (DSUs) as part of the company's Amended and Restated Deferred Fee Plan for Directors.
• The DSUs were acquired for deferral of cash retainer.
• 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 price of the common stock was $166.1.
• Following the transaction, Woods beneficially owns 3,013.6642 DSUs.
• These DSUs will be settled in cash upon termination of Woods' directorship.
• The reported holdings include dividend equivalent rights accrued on the DSUs.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The transaction reflects a director's continued investment in the company, which is generally viewed favorably. There are no indications of negative news or concerns.

Positives

• The acquisition of DSUs reflects Woods' continued investment in Johnson & Johnson.
• The Deferred Fee Plan for Directors aligns the interests of directors with those of shareholders.

Future Outlook

The DSUs will be settled in cash upon termination of the Reporting Person's directorship, reflecting a future cash payout tied to the value of JNJ stock at that time.

Industry Context

Director compensation in the form of deferred share units is a common practice among large publicly traded companies like Johnson & Johnson to align the interests of board members with long-term shareholder value.

Comparison to Industry Standards

• Deferred compensation plans for directors are common among S&P 500 companies.
• Companies like Pfizer (PFE) and Merck (MRK) also utilize similar deferred compensation mechanisms for their board members.
• The amount of deferred compensation varies based on company size, profitability, and industry standards.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with company performance.
• The transaction has no immediate impact on employees, customers, suppliers, or creditors.

Key Dates