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 the company's Amended and Restated Deferred Fee Plan for Directors.

Summary

• On April 24, 2025, Eugene A. Woods, 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 represent the deferral of cash retainer fees.
• 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 DSUs will be settled in cash upon the termination of Woods' directorship.
• Woods also holds 4,329.6642 DSUs, which include dividend equivalent rights accrued from the Issuer's quarterly dividend.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating stable corporate governance practices. It's neither overwhelmingly positive nor negative, hence a neutral to slightly positive sentiment.

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.

Industry Context

Deferred compensation plans for directors are a common practice in publicly traded companies, aligning director interests with shareholder value and offering potential tax benefits.

Comparison to Industry Standards

• Many large corporations, such as Pfizer (PFE) and Merck (MRK), offer similar deferred compensation plans for their directors.
• These plans typically allow directors to defer a portion of their cash compensation into stock or stock-equivalent units, which vest over time or upon retirement.
• The specific terms of these plans, such as the vesting schedule and settlement method, can vary depending on the company.

Stakeholder Impact

• Shareholders may view the director's participation in the deferred fee plan as a positive sign, aligning their interests with the long-term success of the company.

Key Dates

Keywords

Deferred Share Units, Director Compensation, Form 4, Johnson & Johnson, JNJ, Eugene A. Woods, Beneficial Ownership