Form 4: Johnson & Johnson Director Acquires Deferred Share Units

Mary C. Beckerle, a director at Johnson & Johnson, acquired 1,316 deferred share units under the company's Amended and Restated Deferred Fee Plan for Directors.

Summary

• On April 24, 2025, Mary C. Beckerle, a director of Johnson & Johnson, acquired 1,316 Deferred Share Units (DSUs) under the Issuer's Amended and Restated Deferred Fee Plan for Directors.
• These DSUs will be settled in cash upon the termination of Beckerle's directorship, with each DSU representing the fair market value of one share of Common Stock on the settlement date.
• The reporting person directly owns 15,395.3983 derivative securities.
• The transaction did not involve any payment by the director, as the price of the derivative security is $0.
• The reported holdings include dividend equivalent rights accrued on the DSUs held by the reporting person in connection with Johnson & Johnson's quarterly dividend.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. It reflects a standard director compensation practice, indicating alignment of interests between the director and shareholders. There are no explicit negative implications.

Positives

• The acquisition of DSUs aligns the director's interests with the long-term performance of the company.
• The Deferred Fee Plan allows directors to defer compensation, potentially offering tax advantages.

Future Outlook

The DSUs will be settled in cash upon the termination of the Reporting Person's directorship (with each DSU representing the fair market value of one share of Common Stock on the settlement date).

Industry Context

Director compensation through deferred share units is a common practice among large publicly traded companies like Johnson & Johnson to align the interests of directors with shareholders and incentivize long-term value creation.

Comparison to Industry Standards

• Many large-cap companies, such as Pfizer (PFE) and Merck (MRK), utilize deferred compensation plans for their directors.
• These plans often involve the grant of stock options or restricted stock units that vest over time, similar to Johnson & Johnson's DSU plan.
• The specific terms of these plans, such as the vesting schedule and settlement method, can vary depending on the company's compensation philosophy and tax considerations.

Stakeholder Impact

• The acquisition of DSUs by a director can positively influence shareholder confidence by demonstrating a commitment to the company's long-term success.
• Employees may view this as a positive sign of leadership's dedication to the organization.

Key Dates

Keywords

Deferred Share Units, Director Compensation, Form 4, Johnson & Johnson, JNJ, Beneficial Ownership, SEC Filing