Form 4: Johnson & Johnson Director Acquires Deferred Share Units

Paula A. Johnson, a director at Johnson & Johnson, acquired 1,316 deferred share units (DSUs) on April 24, 2025, under the company's Amended and Restated Deferred Fee Plan for Directors.

Summary

• On April 24, 2025, Paula A. Johnson, a director of Johnson & Johnson, acquired 1,316 Deferred Share Units (DSUs).
• The acquisition was made under the Issuer's Amended and Restated Deferred Fee Plan for Directors.
• These DSUs will be settled in cash upon termination of Johnson's directorship, with each DSU representing the fair market value of one share of Common Stock on the settlement date.
• Following the transaction, Johnson beneficially owns 4,265.9823 derivative securities, which includes dividend equivalent rights.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. It reflects a routine transaction related to director compensation, indicating alignment of interests with shareholders.

Positives

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

Future Outlook

The DSUs will be settled in cash upon termination of the Reporting Person's directorship.

Industry Context

Acquisition of deferred share units by directors is a common practice in publicly traded companies to align management's interests with shareholders and incentivize long-term value creation.

Comparison to Industry Standards

• Deferred compensation plans for directors are a standard practice among large publicly traded companies like Johnson & Johnson.
• Companies such as Pfizer (PFE) and Merck (MRK) also utilize similar deferred compensation mechanisms for their board members.
• The specific number of DSUs granted and the terms of the deferred fee plan can vary based on company size, performance, and governance policies.

Stakeholder Impact

• The acquisition of DSUs by a director can positively influence shareholder confidence by aligning management's interests with the company's long-term success.

Key Dates

Keywords

Deferred Share Units, Director, Johnson & Johnson, JNJ, Form 4, Beneficial Ownership, DSU, Securities